Gifting life insurance to charity.
If you have a favorite charity or cause that you would like to support in a bigger way, it is possible to use your life insurance policy as a way to leverage your support. If you’re interested in giving a life insurance gift to charity, the following should give you some incite as to the options that are available to you.
One of the ways you can make a life insurance gift to charity is by having a charitable giving rider added to your policy. What this means is that the policy will pay an additional percentage (often 1 to 2% of the value of your policy) to the charity of your choice. In some cases, however, there will be a maximum amount which can be donated and only specific types of charities may be eligible.
Another way in which a life insurance gift to charity can be given is by naming a charity of your choice as the beneficiary or one of the beneficiaries of your life insurance policy. This means that should you die, the charity you’ve chosen will receive the death benefit. The only downfall to this type of life insurance gift to charity is that you will not receive the tax breaks you would had you chosen to donate through another means.
Another option that is available is to cash out the dividends earned from your policy and to donate that money to your favorite charity.
No matter which charity or cause you choose, there are ways to offer your support by using your life insurance policy. Not only do life insurance policies offer their owners greater peace of mind but now they also provide a way for them to do more good with their money.
