Charitable Giving: Creating Legacies Using Life Insurance
Dec 15, 2015
Millions of Americans donate to charitable organizations every year. Did you know that you can use your life insurance policy to make charitable donations? These types of donations often have tax benefits that make them even more appealing.
There are three basic ways in which life insurance can be used for charitable giving. A charitable giving rider can be attached to a sizeable policy and pays a return of 1-2% to a charity or organization of the policyholder’s choice. Policy donations pay designated charities the full face value amount of a life insurance package at the time of the policyholder’s death. Policy donations are highly beneficial to charities and nonprofits, as well as to donors looking for tax-deductible giving opportunities. The third way to link your life insurance policy to charitable giving is to gift policy dividends to a charity of your choice. This gift is often tax-deductible.
Now that you know you can use your life insurance policy as a tool for charitable giving, will you give more than ever before?