Life insurance can be an effective way of donating to charity – and providing a tax benefit to you or your estate.
2 ways to donate to charity
1. Name the charity as your beneficiary
Simply name your chosen charity as the beneficiary of a life insurance policy. Your estate will be able to claim a donation tax credit for the death benefit paid.
2. Donate your policy
Donate a permanent life insurance policy to charity – and get ongoing charitable receipts for your premium payments. Here’s how it works:
Apply for a permanent life insurance policy.
When the policy is approved, transfer the policy ownership to the charity of your choice and name the same charity as beneficiary.
Pay the annual premium and get a tax receipt for that amount.
The charity is guaranteed the amount of the death benefit as long as you continue to make premium payments. The death benefit is paid outside your estate, so the charity receives the proceeds quickly and your estate won’t pay probate fees on the amount.
Consider all of your charitable giving options: Using insurance is just 1 option for charitable giving. Learn more about insurance and other options for donating to charity.
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