Maximize Your Impact: The Power of Life Insurance for Charitable Giving
Canadians who are looking for a way to make a meaningful donation to their favorite charities should consider using life insurance to do so. Life insurance can be a powerful tool for giving, as it allows philanthropists to make a significant donation to charity while also potentially providing tax benefits and other advantages.
One of the main benefits of using life insurance to donate to charity is that it allows you to make a significant donation without having to liquidate assets or make large cash donations. Instead, philanthropists can make a charitable donation by naming a charity as the beneficiary of a life insurance policy. The charity will receive the death benefit of the policy when the policy holder passes away, which can be a substantial amount of money.
Another advantage of using life insurance to donate to charity is that it can provide tax benefits. In Canada, some of the premiums paid on a life insurance policy may be tax-deductible, if a charity is named owner and beneficiary of the policy which can help to offset the cost of the policy. Additionally, the death benefit paid to the charity is generally tax-free and provides the estate with a donation receipt which can help reduce the donors' terminal tax bill.
Canadians who are looking for a way to make a meaningful donation to their favorite charities should consider using life insurance to do so. It can provide tax benefits, help with estate planning and allow them to make a significant donation without having to liquidate assets.
It is important to consult with a financial advisor, insurance & tax professional to understand the specific advantages and disadvantages, and to ensure that you have the right coverage in place to achieve your charitable goals. If you'd like to find out more about the advantages of using life insurance as a vehicle to donate to your favourite charities, please visit our website www.newgroundfinancial.com and click "Book Now" to schedule a time with one of our advisors.