Have you ever considered doing something very special for your alma mater, favorite non-profit arts organization, or other local charity, but didn’t think you could afford it financially? A well-designed estate plan using life insurance helps ensure the charities you believe in will be around for generations to come.
Through the years, you’ve depended on the value of these types of organizations to enhance your life. They’ve contributed to who you are, to the security of your family, and to your children’s future. How can you ensure they’ll be there for future generations? One way is by carefully planning your charitable giving to include life insurance.
Charitable giving can work in concert with your total estate planning objectives. While benefiting your favorite cause, a sensible plan of charitable giving should allow for protection for you, your family, and the value of your gift. Life insurance can address your need for preservation of assets while providing charitable advantages.
Who needs charitable giving as part of an estate plan? Consider the following if you’re an individual or business owner who desires to make a contribution to a community or charity without negatively impacting your family’s resources, is interested in keeping his or her estate whole, finds value in the positive public relations donating has in a community, or is interested in receiving income tax advantages.
Life insurance can be used to replace the value of assets that are transferred to charity. It can also be used to provide a charitable gift. The donor can name a charity as a beneficiary of the life insurance proceeds, donate an existing life insurance policy to charity, donate a new policy to charity, or purchase a policy to replace the value of property gifted to charity.
How can you benefit? Using life insurance as a vehicle for giving provides some important financial benefits to you as well. You can make a substantial gift to charity at comparatively little cost; make a much larger gift than you might otherwise be able to afford; and, depending on how you structure your gift, you may be able to take an income tax deduction equal to the amount of the premium you put toward the policy. Life insurance proceeds paid to a charity are estate and income tax free. The charity receives 100 percent of your gift-guaranteed-as long as you continue to pay the appropriate premium. The kind of life insurance you can use for charitable giving varies based upon your specific needs.
Giving back to your community gives you an inherent sense of pride, accomplishment, and purpose. Talk to your agent to learn more about charitable giving with life insurance. AA!
