It is possible to donate life insurance to a charitable organization. People don’t always have a large net worth or enough money to make a significant donation to charities they admire. However, there are ways to get them a good amount of funds that are often not taken into account and that is to donate life insurance.
One of the ways to do this is to make the charity the owner and beneficiary of your permanent life insurance. Imagine that at the time of donation the policy has accumulated about $200,000 in benefit. The charity would then have three options: collect the cash value now, continue to pay the policy premiums, and wait for the benefit to continue to grow to collect later, or continue to pay the premium and get the death benefit. in its entirety when the donor dies.
Another advantage of this type of donation is that the donor manages to contribute a large sum of money, without having to bother to sell their assets and would also obtain a significant deduction on their taxes, while they live.
If the policy owner does not wish to transfer ownership of the policy to the charity for fear that their financial situation may change in the future, they have the option of making the organization the sole or partial beneficiary of the policy. That way, he would continue to be the owner of the contract and, in this case, he would not be able to deduct taxes during his lifetime.
If, as you anticipated, his financial situation weakens, the policy owner could access the cash value of his policy or the death benefit.
In short, if your family members are financially comfortable, have no major debts, have a good net worth, and want to make a substantial donation to a charitable organization, the easiest option is to donate your life insurance policy. It is possible to donate life insurance to a charitable organization.
If you want to know the details of the different benefits of having life insurance, call your Univista Insurance specialist and he will explain the details and help you find the best life insurance on the market.
Call us today for a full qualification! (305) 728-6352. You can also quote for free here.
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