What it is:
A gift of life insurance is the donation of a paid-up insurance policy or the gift of a policy that requires on-going premiums to maintain. It is an affordable way to give a substantial gift to a charity.
Benefits:
- a donation receipt for the cash value of the policy. (If you donate an existing policy on which premiums are still being paid, you will receive a receipt for the cash value of the policy and subsequent premium payments you make.)
- no reduction in the value of your estate
How it Works:
- Purchase a new life insurance policy or use an “in-force” policy (premium payments are up to date).
- Choose a charity as your beneficiary.
- Transfer ownership of the policy to the charity.
- Continue to make premium payments on the policy.
Further Info:
If you are considering a gift of life insurance, we recommend you consult with a qualified financial planner and your insurance broker.