Make a Gift of a Life Insurance Policy to Charity
Using Abundance Canada to donate a life insurance policy to charity is a practical way you can make a significant future gift. Whether a new or existing policy, you can use life insurance to increase your charitable giving beyond anything you thought possible. The difference between the two is when you receive your donation receipt.
How Donating Life Insurance to Charity Works
- Your gift to charity is assured with a paid-up life insurance policy or through a policy with ongoing premiums paid by you.
- New or existing life insurance policies can be gifted to Abundance Canada. You may choose to continue paying premiums directly to the insurance company or donate the money to Abundance Canada to pay the premiums.
- Within days or weeks of the passing of the last life insured, the insurance proceeds are paid directly to Abundance Canada. They bypass the estate of the deceased person.
- A donation receipt may be issued for the value of the policy at the time of the transfer to Abundance Canada. Donation receipts can also be issued for ongoing premium payments if ownership of the policy has been irrevocably transferred to Abundance Canada.
- You can purchase one policy, instead of purchasing multiple charitable life insurance policies, to benefit several charities and name Abundance Canada as the owner and/or the beneficiary.
- If Abundance Canada is not the owner, just the beneficiary, no donation receipts would be issued for the value of the policy or ongoing premium payments. A donation receipt would be issued for the amount that Abundance Canada receives on the passing of the last life insured.
- You can recommend to Abundance Canada which charities you would like to support, how much and over what period of time. You may amend your recommendations at any time without cost.
- Using Abundance Canada to distribute the proceeds from your charitable life insurance policy will provide tax credits and make life easier for your executor/executrix.
Benefits of Donating a Gift of Life Insurance to Charity
- You can generate significant donation receipts either today or in your estate.
- A gift of life insurance is not subject to challenge by an estate beneficiary or secured creditor.
- Distributions to charity can be made anonymously.
- Life insurance gifts can reach the charities much more quickly than those given through the estate.