Charity Life Insurance vs Final Estate Plan

by Paul Hirtle CFSB, CLU
(Thunder Bay, Ontario, Canada)

Recently we started a "guaranteed-issue" (must pass a few health questions concerning "major illnesses")charity life insurance program - a limited pay non-particpating permanent product that is owned & payable to charity. Applications are completed on-line and links to the program are placed on the charities own websites. Applicants can choose to purchase up to $50,000 of coverage with guaranteed payments of either 3 or 5 years. The initial results of this sales-approach are very promising BUT this is not the sales tip...

...the tip is that this discussion of this small planned gift to a charity of their choice opens up the more detailed discussion of planned giving combined to the final estate plan. This is where the true value of our planning advice and the tax benefits that life insurance can provide at death to offset the "huge" taxes normally due at death.