GIFT OF LIFE INSURANCE
Make a Significant Future Gift
Using Abundance Canada to make a gift of life insurance for the benefit of 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.
How it Works:
- Your gift to charity is assured with a paid-up policy or through a policy with ongoing premiums paid by you. A donation receipt would be issued for the ongoing premiums paid by you, if the policy is owned by Abundance Canada;
- New or existing 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 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 beneficiary or just 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 would recommend to Abundance Canada (in a separate document) how the proceeds of that policy should be managed or distributed;
- You may amend your recommendations at any time without cost;
- Using Abundance Canada to distribute the proceeds from your charitable life insurance policy may reduce your probate fees and eliminate additional work for your Executor(s).
Benefits of a Gift of Life Insurance
- Life insurance proceeds flow outside your estate, which could reduce probate costs;
- 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, if you wish;
- Life insurance gifts can reach the charities much more quickly than those given through the estate.
Keep track of important information with our Personal Information Directory.
Abundance Canada is a public foundation registered with the Canada Revenue Agency (CRA). Abundance Canada is authorized to receive charitable donations, issue official donation receipts and distribute funds to registered charities in Canada through a donor-advised model we administer.
Charity Registration No: 12925-3308-RR0001.