Using Life Insurance for Charitable Gifting
July 11, 2013 | News
Having trouble deciding on a beneficiary for your life insurance policy? What most people don’t realize is that you can name a charity or other organizations as a beneficiary. To learn more, please read the short article below provided by Auto Owners Insurance. Please feel free to contact us with any questions you may have.
When deciding on a beneficiary for your life insurance policy, you are likely to think of the traditional options: your spouse, your children, or another close family member. Did you know, however, that you can name a charity or other organization as a beneficiary on your life insurance policy?
Americans are typically generous people and many would like to give more to the charities that they love and support. Using the benefits of a life insurance policy is a perfect way to give to a charity or non-profit group in your community.
Below are just some of the organizations you can name as the beneficiary on your life insurance policy, and you can take comfort in knowing that you are leaving a lasting legacy for a cause you believe in.
• Fraternal organizations
• Local charities
• Alumni associations
There are many benefits to leaving a charitable donation:
• Your estate may receive and offsetting tax charitable deduction so your heirs would pay less in estate taxes.
• Usually the amount of premiums paid into a life insurance policy is less than the actual death benefit, so over all it is a good investment.
• The beneficiary will receive the death benefit tax-free and the money can be used immediately for whatever purpose the charity chooses.
• Adding a life insurance policy can save you additional money on your home, auto, or business policies.