My Par Gift is an innovative, first-of-its-kind, insurance product designed for charitable giving using life insurance. In this post, we discuss how it works and why you might want to consider using insurance to make a bigger impact at a smaller cost.
Charitable causes rely on the generosity of donors to serve the needs of the community. Leaving a legacy of giving when you pass away can benefit your estate and support a cause you support in a meaningful and lasting way.
Canada Life has introduced an innovative, first-of-its-kind insurance product using life insurance as an effective tool for charitable giving.
The donor makes a donation for the single premium, which qualifies as a charitable donation. The registered charity is the owner and beneficiary of the policy. My Par Gift can offer the registered charity the flexibility of a payout when the insured person dies or access to cash while they’re alive. It is important to note that any withdrawals or unpaid loans will decrease the size of the charity’s payout.
How does it work?
First and foremost, it’s life insurance designed for charitable giving. The registered charity receives the payout on death of the insured person.
It’s a single premium payment. The base amount of life insurance is guaranteed to stay in effect for the insured person’s lifetime once the single premium payment is made.
It belongs to the charity. As the owner, the charity controls the policy.
It can help the charity grow its legacy through potential dividends. Dividends can be used in many ways. The charity can choose to buy additional insurance coverage, which may further increase the policy’s cash value and payout on death. Or, they can take the annual dividends as cash.
It gives the charity flexibility. Over time, the life insurance policy builds cash value. The charity has guaranteed access to these funds, which can be used in many ways during the insured person’s lifetime. It is important to note that any withdrawals or unpaid loans will decrease the size of the charity’s payout.
It has tax advantages for the donor. The single premium payment qualifies as a charitable donation.
This case study provides insight into how the program works to make a bigger impact at a smaller cost. Please schedule a meeting with us to discuss whether My Par Gift could help you leave a legacy of support to your favourite cause.