Charitable Giving

Planning Using Life Insurance

During the month of August, we are focusing on charitable giving.  According to Forbes, the “Great Wealth Transfer” is on the horizon.  “Over the next two decades, parents and grandparents are expected to pass down trillions of dollars (approximately $84 trillion, by one estimate) to charities and younger generations—particularly, Millennials and Gen Xers.”  It’s expected that the future heirs will be actively engaged in charitable endeavors.  This is due to an awareness of social injustices, a desire to have more of an active role in impacting change, and a mistrust in the government’s ability to problem-solve.

Life insurance has the power to amplify the value of a charitable gift. Gifting leverage may be possible because the death benefits provided are typically higher than the premiums paid. The degree of leverage achieved depends on the size of the policy death benefit, the health and life expectancy of the insured, and the total premiums paid.

However, life insurance can be sophisticated, and not all life insurance policies are alike. If the idea of charitable giving through life insurance is appealing, the best way to produce successful results is by consulting an experienced life insurance professional with insight and experience in charitable planning.

Click this link to read more about Using Life Insurance to Fund Charitable Gifts

Contact us with any questions or opportunities to help you or your clients achieve identified goals.  This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.