Charitable Giving

Carrier Spotlight – Charitable Riders

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.

Insurance carriers are aware of the desire for wealthy individuals to give back to their community or society through charity.  Some insurance carriers offer a no-cost rider for select products that provides an additional amount for charity.  The rider must be added at policy implementation, but the charitable organization can be changed during the life of the insured.  Some carriers require a minimum death benefit to access the rider, and most of these riders calculate the amount available to charity as 1% of the death benefit.  If the insurance carrier and product fit the needs of the wealthy individual, this option can be a good way to build a legacy through charitable giving without sacrificing any death benefit intended for their heirs. 

Other restrictions apply in regard to the rider, and we’re happy to navigate this option with you or your clients.  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.