Is Charitable Gift Giving right for you?
Frequently Asked Questions
There are a lot of good reasons to consider using a life insurance policy for the purpose of giving to your favorite charity. Among these is the fact that it ultimately provides to the Charity a much larger gift than would be possible with the other assets: like cash, stocks, bonds, or even real estate. In addition to the multiplication of the bequest to the charity the method for completing the transaction is relatively simple, confidential, and extremely effective. We've compiled a list of some of the questions others have had, and you might have, regarding this most effective giving method.
Q. WHY SHOULD I CONSIDER A CHARITABLE GIFT OF LIFE INSURANCE?
A: Basically, the gift of life insurance to a charitable organization permits a person the opportunity to give a maximum bequest (life insurance death benefit) for a relatively small amount of charitable contribution (the policy's premiums). This can accomplish the charitable goals of the donor in an efficient, timely manner, upon the death of the insured person -- outside the probate process, and therefore not a matter of public record.
Q. ARE THERE ANY OTHER ADVANTAGES?
A: Yes, generally, as long as the new life insurance policy is owned by the charity, the premiums for the policy are deductible from federal income taxes as charitable gifts (subject to limits of income). Since the charity is designated as the beneficiary, you'll have the benefit of knowing upon the insured's death, the life insurance death benefit will be paid directly to the charity you have chosen.
Q. HOW DO I DETERMINE IF GIVING A LIFE INSURANCE POLICY TO CHARITY IS RIGHT FOR ME?
A: Again, only after serious and thoughtful consideration of your family's needs should this be contemplated. In consultation with your family, a trusted financial advisor and your accountant and/or lawyer you may determine if this is a suitable option for you. Your Knights of Columbus insurance agent has the knowledge and analytical tools to help you determine if your others needs are covered. His consultation is free. He can also provide the products you may need to accomplish your goals.
Q. WHAT ARE THE BENEFITS TO THE DONOR?
A: For the donor, the benefits include: Convenience - It is a simple process to designate a beneficiary or transfer the ownership rights under a new or existing policy. Tax Savings - Significant income, estate, and gift tax savings may be available by effectively planning your gift using life insurance. Privacy - Unlike a bequest in your will, a life insurance certificate gift is not a matter of public record. Flexibility - You can choose whether to name a charitable interest as a beneficiary on either a new or existing policy.
Q. WHAT ARE THE BENEFITS TO THE CHARITY?
A: The benefits to the recipient include: Size of the Gift -- With a gift of life insurance, your favorite charitable interest may receive a larger contribution than would be possible if you gave other assets. Avoiding Probate -- Your life insurance gift can be put to work faster because the charitable recipient receives the certificate proceeds immediately, without having to wait for the estate to be settled. The Full Amount -- Since life insurance gifts are generally not subject to estate taxes or probate costs, your charitable beneficiary receives all the proceeds you designate.
A: Basically, the gift of life insurance to a charitable organization permits a person the opportunity to give a maximum bequest (life insurance death benefit) for a relatively small amount of charitable contribution (the policy's premiums). This can accomplish the charitable goals of the donor in an efficient, timely manner, upon the death of the insured person -- outside the probate process, and therefore not a matter of public record.
Q. ARE THERE ANY OTHER ADVANTAGES?
A: Yes, generally, as long as the new life insurance policy is owned by the charity, the premiums for the policy are deductible from federal income taxes as charitable gifts (subject to limits of income). Since the charity is designated as the beneficiary, you'll have the benefit of knowing upon the insured's death, the life insurance death benefit will be paid directly to the charity you have chosen.
Q. HOW DO I DETERMINE IF GIVING A LIFE INSURANCE POLICY TO CHARITY IS RIGHT FOR ME?
A: Again, only after serious and thoughtful consideration of your family's needs should this be contemplated. In consultation with your family, a trusted financial advisor and your accountant and/or lawyer you may determine if this is a suitable option for you. Your Knights of Columbus insurance agent has the knowledge and analytical tools to help you determine if your others needs are covered. His consultation is free. He can also provide the products you may need to accomplish your goals.
Q. WHAT ARE THE BENEFITS TO THE DONOR?
A: For the donor, the benefits include: Convenience - It is a simple process to designate a beneficiary or transfer the ownership rights under a new or existing policy. Tax Savings - Significant income, estate, and gift tax savings may be available by effectively planning your gift using life insurance. Privacy - Unlike a bequest in your will, a life insurance certificate gift is not a matter of public record. Flexibility - You can choose whether to name a charitable interest as a beneficiary on either a new or existing policy.
Q. WHAT ARE THE BENEFITS TO THE CHARITY?
A: The benefits to the recipient include: Size of the Gift -- With a gift of life insurance, your favorite charitable interest may receive a larger contribution than would be possible if you gave other assets. Avoiding Probate -- Your life insurance gift can be put to work faster because the charitable recipient receives the certificate proceeds immediately, without having to wait for the estate to be settled. The Full Amount -- Since life insurance gifts are generally not subject to estate taxes or probate costs, your charitable beneficiary receives all the proceeds you designate.
How do I get started?
The first step is to determine that your needs for personal and business life insurance are met. Again, your Knights of Columbus agent will conduct a free analysis of these needs, and your ability to meet them with existing insurance and assets. If you determine that charitable gift giving is right for you, he can also help by providing access to the highest quality products from our top-rated life insurance organization. Your agent will also help with any paperwork that needs to be done. In short, he'll be with you and your family through the whole process.
The first step is to determine that your needs for personal and business life insurance are met. Again, your Knights of Columbus agent will conduct a free analysis of these needs, and your ability to meet them with existing insurance and assets. If you determine that charitable gift giving is right for you, he can also help by providing access to the highest quality products from our top-rated life insurance organization. Your agent will also help with any paperwork that needs to be done. In short, he'll be with you and your family through the whole process.