Create your Legacy

You are passionate about your school, university, charity, women’s group etc. You would like to donate as large a sum as possible.

Charitable gifting with life insurance offers you a more attractive advantage because it allows one to make a much larger gift to a charity.

• Designate a charity/NGO/Faith-based Organization as the beneficiary of a life insurance policy. You buy a life insurance where you are the owner of the policy, but you designate the chosen organization as the beneficiary. You as owner would maintain control of the policy during your lifetime, and the organization collects
• The policy proceeds as the beneficiary. In this scenario, you would maintain control of the policy, but as the charity collects the insurance proceeds upon your death,the death benefit qualifies as a tax credit on your final income tax return. In this scenario, the premiums for the life insurance contract are not eligible for a tax credit. Since there is a direct beneficiary designation, the life insurance death benefit would bypass the estate and avoid any probate fees.
• Transfer ownership of the policy to the charity In this scenario, if a life insurance contract is set up so that the charity/organization is the owner of the life insurance policy, the premiums for the contract will qualify for a tax credit as well as the beneficiary. The policy then becomes an Asset on the books of the organization. However, since you are no longer the owner of the policy, the future death benefit will not qualify for a tax credit. Also, since you’ve relinquished control, you will no longer have any rights (such as the right to change the beneficiary) in the policy.