I’ll let you in on a little secret: You don’t have to be a millionaire to donate like one. Life insurance is an inexpensive option to leave a significant and long-lasting legacy to a charity, school, or religious institution. If you presently give infrequently or even annually to charity organisations, adding life insurance as a planned contribution can multiply your influence tremendously.
This is why: Your present wealth has no bearing on planned contributions. A minor increase in your monthly budget for life insurance premium payments might result in a far greater contribution upon your death than recurrent gifts based on your normal salary.
For example, a 50-year-old can utilise a perpetual life insurance policy to give a $50,000 tax-free gift upon death for around $75 each month. It would take almost 125 years to contribute the same amount to your organisation in $400 yearly gifts. And the monthly coverage payment for a 40-year-old is only $60.(The cost is determined on the donor’s health and lifestyle.)
So, how exactly does it work? You get a perpetual life insurance policy and choose your favourite charity as the beneficiary. The beneficiary is the person or organisation you choose to receive the proceeds of your estate after you die.
Permanent life insurance policies provide coverage for the rest of your life as long as you pay your premiums, making them excellent for planned presents. And it’s frequently easier to fit into your budget than you think—the younger you are, the more economical the coverage may be. So, now is the greatest moment to consider life insurance as a giving vehicle!
Life insurance policy proceeds are frequently 20 to 100 times the amount of yearly donations and are among the greatest gifts a nonprofit will receive. Contributions to planned giving are critical to a nonprofit’s longevity and capacity to carry out its goal, and they assist organisations in weathering annual variations in philanthropic gifts. If you’re enthusiastic about making a difference and want to multiply your impact enormously, life insurance can be a great method to do it.