Take Root: Giving Through Life Insurance
Many of you, our generous donors, support Humber through donations, pledges and gifts of stock. Your generosity lights the way for our innovation and programs in such impactful ways. But did you know there are a variety of benefits by giving another way? Leaving a legacy at Humber River Hospital can take root in a variety of different ways and this is the place where we will explore topics related to planned giving.
In every edition of Take Root, we answer a question from a donor on anything from leaving a gift in their will, to giving through RRSPs, RRIF and more! In this edition, our friend Mark Halpern, CEO of WEALTHinsurance.com, shares his expertise.
Q: I’m 67 years young and I’m so grateful for the life I’ve built. My kids are all grown up and independent and my family is in a really good place. Recently, I was reviewing my Life Insurance policy that’s up for renewal, but I’m not really sure it fits my life anymore. Instead of cancelling it, is there a way to donate it to charity instead?
A: Absolutely, yes! The benefits of giving through Life Insurance are many. Donating with online payid pokies cash, cheques, or credit cards is not always the most tax-efficient way to be generous. A gift of Life Insurance can be the most cost-effective way to give, typically costing about 12 cents per dollar. For a relatively small investment, you can make a considerable impact in the future. There are a few ways to do this.
When a donor purchases a new policy, all they have to do is name Humber River Hospital Foundation as owner and beneficiary. You will receive a tax receipt for premiums paid each year and Humber will receive the proceeds of the Life Insurance policy upon your death and use the funds to support their important programs. Many policies can provide an annual dividend payment to the charity while you are alive, so the Life Insurance policy can help them each year and not just at death.
If a donor has an already existing policy, all they have to do is designate HRHF as the beneficiary. Humber will receive the death benefit, and your estate will get a charitable tax for that amount. For every $2 you give to charity, you will save $1 of tax.
Do you have a question you would like answered by our experts? If you’d like to learn more about this type of giving, please contact Caterina Magisano at 416.242.1000 ext. 81516, firstname.lastname@example.org.
This information does not replace advice from your professional finance advisor. Please contact them with questions about your specific financial life plan.