Gifting a new life insurance policy or an existing one you no longer need is a cost-effective way to donate a large sum to the Archdiocese of Vancouver or your parish.
Donating a life insurance policy is not subject to taxes, probate costs or estate debts, and you can make a substantial contribution to the Archdiocese or your parish through relatively small monthly or yearly payments.
Here are three ways you can donate a life insurance policy:
- Take out a new policy in the name of Archdiocese of Vancouver or your parish. You will receive a charitable tax receipt for any premiums you pay.
- Name the Archdiocese of Vancouver or your parish as the beneficiary of an existing policy. This is a good option if you already have a policy that your family no longer needs for financial stability. At the time of your passing, the charity will receive the policy proceeds and your estate will receive the tax benefits.
- Transfer ownership of an existing policy to the Archdiocese of Vancouver or your parish and receive a charitable tax receipt for the cash value of the policy. If you owe annual premiums on the policy, you will still pay them, but you will also receive tax receipts in the amount of your payments.
The benefits of giving a gift of life insurance:
- Periodic premium payments are an affordable way to make a significant gift.
- An insurance policy is not part of your estate and so is not subject to probate fees.