Charitable giving through life insurance: Conclusion

Life and Health Insurance

Charitable giving through life insurance: ConclusionIf you would like to make a truly special gift – one that creates a living legacy in your name – life insurance may be the answer. It’s a low-cost way to endow a favorite institution or association and can go a long way to minimizing the final tax payable upon your death.“I think charitable giving through life insurance can be a very effective tax advantage for estate planning purposes. The best charitable giving life insurance plans are structured through a family lawyer with the advice and consent of the agent and charity representative.” says Dobronos.

This method of planned giving also allows you to leave a sizable bequest to your favorite charity while ensuring minimal impact on the beneficiaries of your estate.

Charitable giving through life insurance is a relatively straightforward estate planning solution. However, it is important to remember that in order for it to be effective; you must ensure that the policy in question is a permanent one. In other words, it must remain in effect until you die.

Charitable giving through life insurance is becoming more and more popular. It’s financially effective because a substantial asset can be created with a comparatively small investment. Also, there are none of the administrative expenses or potential estate disputes associated with bequests made in a will.

“Charitable giving through life insurance is an excellent legacy for those who have not been blessed with children and even for those who have been blessed with children,” Michael Dobronos goes on to say that “Charitable giving is a special way to be remembered long after you have left this earth.”

If you have responsibilities as a fund raiser for a charitable organization, you may also want to investigate how life insurance might play a part in your planned gifting program.

Attorney Dobronos believes that “Charitable giving is a special way to be remembered long after you have left this earth. While you may be gone, your charity will fondly remember your sincere commitment in continuing contributions.”

The use of life insurance as a charitable gift doesn’t have to be just another bland item on the menu of charitable gift planning strategies. There are many ways to “spice it up” to suit the changing needs of the nonprofit organization and a donor’s planning palate. Most donors and nonprofit organizations think of life insurance only as an asset that produces a future benefit for the nonprofit organization. However, by using the wealth-replacement strategy and/or the life settlement solution to meet the needs of the donor’s family and the nonprofit, charitably inclined individuals can truly get the most out of life.

The above article is meant to give a general overview of insurance policies; exact coverage and terminology could vary by insurance company. Please refer to your policy for exact coverage details and terminology.

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