Life Insurance as a Special Gift For Your Favorite Charity

Life Insurance as a Special Gift For Your Favorite Charity

by Leslie Freeland, December 21, 2017

An Unusual Gift with a Powerful Meaning.

As we shop for Christmas gifts throughout November and December (and sometimes October for the extra motivated!), we usually buy things like blankets, toys and gift cards. Or sometimes we’ll give a home-made coupon for a special treat for a loved one, such as a dinner out. But have you ever thought about giving a gift that expresses your love, not only during this season or even the upcoming year, but for life?

That’s the gift of life insurance.

When you buy a life insurance policy, who you leave your benefits to – your beneficiary – is entirely up to you. You may even wish to leave some or all of your life insurance proceeds to a charity or other organization. In fact, naming a charity as the beneficiary of your policy is more common than you think!

Traditional options for donating to a charity

There are different ways you can leave your legacy to a charitable organization. But not all ways are equal.

You could list a specific amount of money in your estate plan or will that you want to go to a specific charity, such as $5,000.

Or you could list a specific percent of your estate’s assets to the charity that you want to support, such as 20%.

Either way, this charitable gift could be anything from money in your retirement savings account, to your stocks and bonds, or even some of the proceeds from the sale of your real estate or your collectibles.

A simpler (and better) solution for giving

We want you to know there is a simpler and better solution for you to leave a legacy to your favorite charity. You can name them as the beneficiary of your life insurance policy.

Make sure you have the organization’s name, address and tax ID number.

You are able to leave more

Imagine that your will is written so that the $50,000 balance in your retirement savings account will go to a specific charity when you die. Now, if you only want to leave the charity $50,000, then you’re all set. But what if you would like to leave them more money but can’t afford to do so?

With a life insurance policy, you’ll be able to give them much more even though you may not have the assets. For example, according to Life Happens.org, a healthy 30-year-old person can get up to $500,000 in term life insurance for about a dollar a day. So, if your heart’s desire is to leave your favorite charity more than you can afford, a life insurance policy is a better way for you to pay it forward.

But what type of life insurance do I get?

Just about any life insurance policy can work to leave a legacy to your favorite charity if you name them as a beneficiary.

But there are certain life insurance policy types that may be better if you want to leave a charitable gift. For example, a term life insurance policy eventually expires. So if you have a 20-year, term life insurance policy that you bought when you were 30 years old, the policy will end when you turn 50. So, with term life insurance, you might outlive your policy and not leave your gift.

Unlike a term policy, a permanent life insurance policy, won’t expire after a certain number of years. And as an added bonus, permanent life insurance builds equity and cash value over time, leaving your charity with an even larger gift.*

Best of all, no matter which one you choose, either term or permanent life insurance, your gift is passed onto your charity of choice tax-free.

The Asurea Difference

If your goal is to donate to your favorite charity after you die, Asurea can help. We’re your Simple Solution to help you choose the right policy to guarantee that 100% of your gift gets to the charity of your choice. Contact Asurea today to learn more.

 

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Asurea offers Life Insurance, Mortgage Protection Life Insurance, Medicare Supplement Insurance, Final Expense Insurance, Disability Insurance, Long-term Care Insurance, Retirement Planning products and more. For additional information, click on the ‘Learn More’ button below. Want to have articles just like this delivered to your inbox? Just enter your email address in the box below and click ‘Subscribe.’

This information is provided for general consumer educational purposes and is not intended to provide legal, tax or investment advice.

*Loans borrowed from your life insurance policy will accrue interest. An outstanding loan balance (loan plus interest) will be deducted from the death benefit at the time of claim. Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage, and will reduce the death benefit and policy values. Dollar amounts are for illustrative purposes, not actual.

 

Leslie Freeland

Leslie Freeland

Find her at LinkedIn
Leslie joined Asurea as the Marketing Communications Coordinator in February 2015. Since then, she has been working closely with insurance professionals to educate the public on the importance of life insurance and protect the public from common scams with informational articles.
Leslie Freeland