Give Back With Life Insurance!

Life Insurance Palm Desert CAUse Your Life Insurance Policy To Support Those In Need

The holiday season is a great time to give back and help those in need by supporting a charity through donations. When you think of donating to a charity, you typically think of donating time, cash, or property, right? There is a way to leave a more effective and substantial donation to the charity of your choice: life insurance! Here is how you can use your life insurance policy to support your favorite charity or non-profit organization today.

Charitable Giving Riders:

These riders can be attached to policies that have a face value of over $1 million. They will pay an additional 1-2% of the policy’s value to a charity of the policyholder’s choice. There is no additional cost to add a charitable giving rider onto your life insurance policy and it will not increase your premium or decrease the policy’s value. There are limitations however, such as the amount of protection that you need to qualify to use this rider and the IRS’s definition of a charity or non-profit organization.

Policy Donations:

This way of giving back through life insurance is a little more hands on than charitable giving riders. Policy donations are when you gift your life insurance policy to a charity, which allows them to receive the entire value of the policy when the policy takes effect. There is no limit to the size of the policy that may be donated and there are multiple tax benefits for donating your policy.

Charity As Beneficiary:

The simplest way to leave money to a charity with life insurance is to name the charity of your choice as the sole beneficiary or one of a few beneficiaries of your life insurance policy. There are still substantial tax benefits to this route, and there is more flexibility in case things change. Making a charity the beneficiary also makes the transaction more private in case the donor wishes to keep their intentions under wraps.

Consider these options to use your life insurance policy as a way to give back to your favorite charity. Contact the insurance professionals at Desert Empire Insurance in Palm Desert for all of your life insurance needs. Let us protect your loved ones and support causes that are close to your heart with a great policy!