Charities / Foundations

Not-for-profit organizations are learning that life settlements can be another unrealized source of gift-giving. Many organizations already possess gifted life insurance policies or have a donor base of seniors who no longer have a need for their policies. A life settlement can offer many benefits to the organization and the donor, including:

Receiving a donation from a donor who may not have otherwise been in a position to contribute
Providing cash that can be used immediately for charitable causes and programs
Donating to a favorite philanthropic organization without depleting cash reserves or losing income-producing assets
Getting a tax deduction for the fair market value of the life insurance policy instead of only the cash surrender value
Helping donors achieve their philanthropic legacy while still living
Eliminating costly premiums and annual reviews on donated policies
Providing a valuable option to the donor that furthers their tax and estate planning objectives and creates an opportunity for future gifting

Questions to ask your donors

The following are common questions to ask your donors prior to determining whether a life settlement may be a viable option:

When was the last time you had your life insurance policy reviewed?
Does the need for the policy still exist?
Have you had any significant life changing events?
Is your policy in danger of lapsing or being surrendered?