Cash for Life
We call this our "Cash for Life" strategy. Your annual cash donations are combined with life insurance to create a gift well beyond what you thought was ever possible.
Instead of making annual cash donations to your charity of choice you use the same cash amount to pay the premium on a life insurance policy. You name your charity as the beneficiary of the policy so that when you pass away the charity receives the policy death benefit. Examples will more effectively show what can be achieved.
Say a 40 year old couple was giving $300 per year to their church. If the couple lived until age 80, over 40 years they would have given $12,000. Alternatively, the couple could purchase a $50,000 Universal Life policy on their lives and pay $300 in premiums each year. When the couple passes away at age 80, instead of $12,000 their gift to the church would be $50,000.
Alternatively, say a single 50 year old female was giving $30 per month to a women's shelter. Using the $30 to pay the premium on a Universal Life policy, she could leave a $25,000 gift.
From a tax point of view, in each of these cases, by using life insurance the donor will receive a sizeable charitable tax receipt at the time of their passing that will eliminate taxes on their estate.
You truly can make a huge difference for your charity. It is truly humbling what our clients, with modest means, can accomplish. Contact us and we'll evaluate what giving strategy meets your goals most effectively.
