We are known for our financial planning and wealth management services at BlueRock Wealth Management, but you might not know that we also offer insurance of various types. Life insurance should be part of your holistic life plan to meet your loved one’s needs after you pass away. Life insurance is also an excellent way to leave a legacy to charities you support, and we can help you customize your policy to do this by using one of the following strategies:
- Buy a policy specifically for a charity—Did you know you can purchase a life insurance policy and name the charity as the owner and the beneficiary of the policy? Although you will not be entitled to a donation tax credit for the insurance proceeds paid out when you die, you will be able to claim a donation tax credit for the premiums you pay every year on behalf of the charity.
- Transfer your policy to a charity—You can take an existing life insurance policy and transfer ownership of it to a charity. Then, like we mentioned above, the charity will become the owner and the beneficiary of the policy. And when you die, the charity will receive the proceeds from the policy.
- Name a charity as one of your beneficiaries—You can take an insurance policy you already own and name one (or several) charities as a beneficiary on the policy. With this approach, you will not be able to claim a tax credit for the annual premiums you pay on the policy, but you will be eligible for a tax credit for the value of the death benefit when the policy pays out to the charity at the time of your death.
- Use your will to make a gift—If you are unsure which charities to help and want to leave this choice up to the executor of your estate, take a life insurance policy you own and name the estate as a beneficiary. Then, include instructions in your will to donate any proceeds to charity once your estate receives them.
As you can see, there are multiple ways to use life insurance to leave a legacy following your death. Set up an appointment with your wealth management adviser to talk about how to incorporate charitable giving into your financial life plan.