Do you enjoy giving money to your favorite charity? Are you interested in helping people in need? Maybe there is a specific cause that you love to support or want to be recognized at a specific school or university. Maybe you are simply considering giving money to a charity for the tax incentives. There are many reasons people decide to give money to charities, but your life insurance policy can be one of the easiest tools to do so. Maybe you are wondering how that can work. One handyman I know, if you are searching for Roswell handyman services near me, is a very charitable person and does great work with several local charities.
Well, let me tell you how.
- Make the charity your beneficiary: if you have an existing policy you can list the charity of your choice as the beneficiary. Maybe there is a policy you own that you no longer need. If the charity becomes your beneficiary, that policy will no longer be part of your estate when you die. This option gives you the chance to keep control of the named beneficiary and the cash value. It is simple to change the beneficiary to the charity of your choice.
- Make the charity the owner of your existing policy: when the charity both owns the policy and is the beneficiary, not only will the policy be removed from your estate but you will receive a current tax deduction. Once the charity receives the policy, though, you will no longer be able to control the value of it.
- Purchase a new life insurance policy: purchasing a life insurance policy is an easy way to set money aside to a charity in your name without having to write a check to them now. All premiums from the life insurance policy are received directly by the charity. They use the premiums to pay on the policy. The charity will then own the cash value of the life insurance policy as an asset.
Of course, most charities prefer to receive donations upfront. If this is not possible for you, though, gifting the money from your life insurance policy is a great way to leave money to your favorite charity when you die.