Charities

What if there were a way to help your charity receive valuable donations now rather than at an unknown time in the future? And what if this utilized an asset both your charity and your donors likely already own?

…Life insurance. Were you aware life insurance policies can be sold in the secondary market just like any other asset… a home, a car, an investment portfolio…and the value of the current policy could be many times more than the current cash value of the policy? This is called a life settlement.

Life settlements provide you with an incredible opportunity to approach current and potential donors. There are many reasons why individuals may no longer want or need their life insurance policies:

• Their desire to create a living charitable legacy
• Their policy’s premiums have become a financial burden
• The primary beneficiary has predeceased them
• Their estate decreasing in size or the state tax exclusion allowance increasing

With 65% of all life settlement resulting in the repurchase of additional insurance, your charity could benefit not only from the proceeds of the settlement, but also as a beneficiary on the new policy.

Life settlements can also help your charity with the donated policies it already owns by allowing you to convert them to cash today, rather than waiting on the death of the donor. This also eliminates the need for ongoing premium payments and administration.