You may be thinking, why do I need life insurance if I have enough in savings to take care of my loved ones that I may leave behind? Well, this may be true. However, life insurance can also be used as a charitable gift. There are ways to use life insurance for charitable uses.
This edition of Life Insurance Thursday, we want to educate you on how you can help your favorite charities with the life insurance.
There are a few ways that you can go about donating to a charitable organization using life insurance. Firstly, the simplest way to give to an organization is to name that charity as a beneficiary. This allows you to make a large donation than you wouldn’t originally be able to afford.
Another way you could donate is by giving an existing life insurance policy to a charity. This means you will be giving all of the rights of the policy to the charity, this strategy means you can take full tax advantages because the transfer of the policy is final.
An additional way to donate would be by using the policy along with a charitable remainder trust. This is more of a complex process; you may need to hire an attorney to set this up. This method has much higher benefits and is worth looking in to.
We hope this edition of Life Insurance Thursday helped you understand how you can use your life insurance policy to benefit a charity of your choice. Remember to check back here every Thursday for more life insurance information and tips from your trusted agents at Community Insurance.