INCREASE YOUR CHARITABLE GIVING WITH NO ADDITIONAL COST TO YOU
Charities were hit hard during the recent recession. According to Giving USA’s 2010 report, total charitable giving fell 3.6% in 2009 alone. Since 2007, individual giving has decreased 2.4%. Giving a life insurance policy to a charity – or naming a charity as a beneficiary on a policy – can be a great way for a charitably inclined client to leverage a relatively small current outlay into a sizable future donation.
The simplest way to give a policy’s death benefit to a charity is to name the charity as beneficiary. The donor will continue to own the policy and make premium payments as required. At the insured’s death, the policy death benefit will be paid immediately in the form charities are most fond of – cash.
Another option is for the donor to transfer ownership of a policy to the charity. The charity will name itself as beneficiary and the charity will have full access to the policy cash values prior to the insured’s death. For policies with significant cash values, this can be an important source of liquidity to cover operational shortfalls or emergency expenses.
Please contact us at 858-703-6178, or use the Ask a Question tab, to discuss how you can help your favorite charity by naming them as beneficiary on a life insurance policy.