How to Donate BIG in Charitable Giving with SMALLEST Dollar?
Have you ever thought that you can really donate a big amount to your favorite charity? It can be a wonderful thing to use life insurance for charitable giving. Life insurance not only allows you to make big donations to your favorite charity at minimal out of pocket cost, but the current tax rules could end up being applied in your favor, if you just understand how they work in relation to life insurance policy. With life insurance, you could probably make a much more substantial gift to the charity of your choice than you would be able to without it. Even though your life insurance premiums are typically quite small and manageable, a charity could receive quite a bit of money from the death benefit. If you are committed to paying the premiums regularly on your life insurance policy, your charity is guaranteed to receive whatever monies you have set aside from the policy when you pass away. Due to the fact that life insurance payouts to charity are not subject to probate costs, estate and income taxes, or other fees, the entire donation is certain to end up in the hands of your choice charity. Income tax benefits are another positive aspect of charitable giving through life insurance. You may be able to reduce your taxes through deductions, depending on how you structure your charitable giving. It is possible that your deduction could be equal to fair market value, or your basis in the policy, and you could, perhaps, deduct your insurance premiums on yearly income tax returns. There are some disadvantages to charitable giving through life insurance. One of these is that the donor should insurable meaning in a good health acquire life insurance policy. If you do not sufficient amount of life insurance and decided to donate your life insurance charity than your family and beneficiaries will receive less death benefits. Nevertheless, if you buy an additional policy to help your family and other heirs after your passing, the problem will be solved. One way in which you can give life insurance to charity is to name that charity to be a beneficiary of your policy. Another interesting way to use insurance for charity is to allow the charity to insure YOU. This works by allowing the charity to buy an insurance policy on your life, and in turn, you end up making tax-deductible gifts on an annual basis to that organization. Typically, this would be equivalent to the premium the charity pays for your policy. Please call one of our life insurance specialists at (866) 972-3262 to determine the right kind of life insurance policy for your charitable giving purpose or please complete life insurance quote request form now.