A Life Insurance Gift - The Benefits to You
Simple and Convenient - The transaction is simple. Your life insurance agent can advise you on the type of policy that would best fit your needs, custom design your program and carry through with the necessary paperwork.
Inexpensive - A way to make a larger gift than you might otherwise be able to, without depleting your current assets now or your estate later.
Leverage - The ultimate value of your policy will be far more than the premiums you pay.
Save taxes today - Immediate tax relief in the form of the charitable tax receipts.
Estate Preservation - Your estate to your family is not diminished because life insurance by its very nature creates an additional, separate "estate".
Eliminates Probate, Legal & Executor Fees - Life insurance is not subject to probate costs or delays in settlement. The full proceeds are payable to the Canadian Liver Foundation at maturity or upon your death.
Peace of Mind - You can plan, arrange and announce the gift yourself and you will know that it will occur just as planned.
Control - Life insurance is not a matter of public record allowing you to remain anonymous. And unlike a Will, the gift cannot be contested.
Recognition - You and your gift can be honoured during your lifetime.
There are a number of ways you can make a gift of Life Insurance to the Canadian Liver Foundation:
You can take an existing policy that has finished serving its original purpose and simply have the ownership and beneficiary designation transferred to the Canadian Liver Foundation. This designation cannot be changed.
A charitable tax receipt will be issued for any accumulated dividends within the policy at the time of transfer. Any continued premium payments also qualify for a charitable tax receipt. There are tax advantages to retaining your current policies. The Canadian Liver Foundation strongly recommends that you discuss this matter with your insurance agent or financial advisor before any transfer takes place.
A new life insurance policy is purchased. After one premium payment has been paid, the Canadian Liver Foundation is named as the owner and beneficiary. You continue to pay the premiums and receive a charitable tax receipt for the premium payments. Again, this designation cannot be changed.
It may be to your advantage to name your estate as the beneficiary of your life insurance policy, and then make a same dollar amount bequest in your Will to the Canadian Liver Foundation. You will not receive a tax receipt for any of the premiums paid during your life. However, your estate will be eligible to claim a donation for the full amount of the insurance proceeds.
You can name the Canadian Liver Foundation as your beneficiary only on your individual or group life insurance. You retain ownership of the policy. You can change beneficiary designation at any time. If you are a salaried employee and have a benefit plan that has a death benefit component to it, consider naming the Canadian Liver Foundation as the beneficiary. However, you will not receive a tax receipt for any premiums paid and your estate will not be issued a tax receipt. Revenue Canada has ruled that ONLY when the charity is owner and beneficiary of the life insurance policy can a tax receipt be issued.
Seek Expert Advice
A life insurance representative should review in detail what would best fit your needs. Before considering a planned gift of life insurance, you should already have satisfied any need for life insurance for the protection of your family.
If you would like to know more, or if you would like to make arrangements for one of our volunteer gift-planners to contact you, please contact our Fundraising department at 1-800-563-5483 or via email at plannedgiving@liver.ca or clfdonation@liver.ca.
