Charity-Owned Life Insurance
Support the charitable organizations you treasure. Leave your legacy impact.
Support the charitable organizations you treasure. Leave your legacy impact.
Even if you don’t have the means to make lump-sum gifts, charity-owned life insurance enables you to become a legacy donor. From a modest donation to a large parting gift, life insurance can be a great mechanism to support your favorite philanthropic cause.
If you have a charitable organization that is near and dear to your heart, you may have considered ways to leave a legacy impact.
Whether your passion lies at your alma mater, church or another foundation, these organizations rely on charitable donations to keep their operations funded.
While many contribute a portion of their salary each month to help keep things going, large, lump-sum gifts tend to be the fuel that helps grow impact over time. Though few have the means to make that kind of out-of-pocket donation in their lifetime, charity-owned life insurance enables virtually anyone to become a legacy donor.
At Higginbotham, we treasure the charities that serve our communities.
As a company that leads with values, we know how important charitable organizations are to the people and the communities they serve.
Employee owned and customer inspired, we can help you plan your gift today so you can leave a legacy tomorrow.
We begin with listening and end with a plan that allows you to make an impact.
By committing to transparency and demonstrating authenticity, we make your policy personal so you can help your favorite charitable organization accomplish more.
You probably have questions as you consider your options for charity-owned life insurance.
Whether you just need more information on your options or need help deciding the policy structure that’s right for you, we have the insight you’re looking for.
Life insurance can help ensure the financial security of the people who depend on you most.
From final expenses to mortgage payments and tuition, the last thing you want is for your loved ones to struggle to make ends meet after you pass away.
Though most people are aware of the value of life insurance policies in securing the future for dependents, less know about the powerful impact they can enable in charitable giving.
Once you have a charitable organization you want to support in mind, you’ll need to decide how to structure the life policy you’ll use to fund your donation. While we recommend working with a life insurance specialist as this process can be complex, the following list represents some of the most popular charity-owned life insurance options available today.
Choosing a charity as a partial beneficiary of a life insurance policy can provide greater flexibility in how your legacy is dispersed. This option allows you to allocate a specific percentage of the death benefit to the charity while the remainder goes to other beneficiaries, such as family members. This arrangement can help to balance your philanthropic goals with the financial future of your loved ones.
It also offers the potential for a tax deduction based on the percentage of the policy’s value that is designated for the charity. Additionally, this strategy allows policyholders to maintain control over the policy and change beneficiaries if their circumstances should change.
Designating a charity as the direct beneficiary of a life insurance policy may be the easiest way to make a legacy impact. By explicitly creating a policy with a charitable organization named the beneficiary, you can avoid the complexity of some of the other strategies and maintain access to the policy’s cash value throughout your lifetime.
This cash value access makes a charity beneficiary policy an excellent option for individuals who want the added security of a nest egg should the need arise. As a bonus, if you want to split your death benefit between a charity and estate, these life insurance policies can easily be structured to do so.
Designating a charity as both the owner and beneficiary of a new life policy can offer some attractive benefits for those looking to spread the tax benefit of their gift out over an extended period.
This is accomplished by way of a “pass-through” strategy in which the benefactor makes recurring donations to cover the premium payments for the charity holding the policy.
Because they’re funded by charitable donations, these life insurance policies can also typically bestow a tax benefit to the donor.
Charity-owned life insurance can be a great strategy for making a legacy impact on a cause you care about.
Whether you’re simply looking to award the death benefit on your permanent policy, pay premiums on a charity-owned policy, allow an organization to draw against the cash value of your policy or gift your policy dividends, our seasoned life insurance specialists are here to help.
A great plan starts with a conversation. Let’s talk about what you need.
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