Life Insurance for Estate Planning
How is life insurance used for charitable giving?
Life insurance can be used for charitable giving in several ways: naming a charity as beneficiary, donating an existing policy to a charity, or using a charitable remainder trust (CRT) funded with life insurance. Life insurance allows you to make a significant charitable gift at a relatively low cost.
Key Points
- Name a charity as beneficiary: simple and flexible
- Donate an existing policy: may qualify for a tax deduction
- Charitable remainder trust: provides income during life, then passes to charity
- Life insurance: makes a significant charitable gift at low cost
- An independent agent can help you design a charitable giving strategy with life insurance