Sales Concept, Resource

Charitable Giving Campaign (Free Template)

Charitable Giving

One of the most valuable ways to use life insurance is the ability to enhance your legacy through charitable giving. There are many ways to structure a charitable gift as we will outline in our free template but they all result in the ability to enhance the value a person gives to their preferred charitable organization.

Most clients are unaware they can utilize this concept with an existing policy or a new one. That's where you as the advisor come in!

At LDA we understand the challenges advisors face, and as part of our mission to help you save time & increase revenue we went ahead and created a free template that you can use (idealy in conjunction with an LDA report) with your clients, even brand it with your logo. We hope this help you communicate the value of this concept for your clients and prospects who may be interested or already giving annual contributions that could be enhanced.

The Template

Here is an example template that can be used with your own clients and prospects, feel free to add your own logo and customize the message

Charitable giving with life insurance
We may naturally want to give back to our community if we're successful. It may be a surprise that life insurance plans provide the perfect solution to allow you to make a substantial gift to your community or a cause your cherish. Here are some ways you could make a difference using life insurance as a charitable gift while minimizing your tax burden.
How could this work for me?
  • Designate the charity as beneficiary on a new or existing policy. The insured's estate will receive a charitable tax receipt for the face amount of the policy. The charity receives a substantial donation and the tax deduction can be applied by the estate in the year of death and carried back to the preceding year.
  • Transfer a new or existing policy to the charity with a pledge to pay the premiums each year. You receive a charitable tax receipt for the amount of premiums paid each year. No receipt is issued for the proceeds of the life insurance on the death of the insured.
  • Buy a life insurance policy equivalent to the value of your RRIF or RRSP and designate the charity as beneficiary of the RRIF or RRSP. On death, the charity issues a charitable tax receipt which offsets the tax impact of the RRIF proceeds.
  • Wealth Replacement Insurance. This creative option allows donating a large asset or lump sum of money to charity. Receive a charitable credit for the donation which results in tax savings for the year the donation is made and then invest these tax savings in an insurance policy that potentially results in enough proceeds to replace the value of the gifted property.
Benefits of this insurance strategy:
  • You or your estate benefit from income tax relief now or in the future.
  • Life insurance amplifies the amount of your charitable gift.
  • Your charitable gift does not impact the bequests to your family. With no need to earmark a portion of your estate for charity, it remains intact for your family.
  • You have the satisfaction of knowing you are giving something back to an alma mater, local hospital or preferred charity.
  • You can create a lasting memorial to your life or the life of a loved one.
Consider this scenario:

Gilberto is 45-year-old successful small business owner. He actively gives to charities in his community but wants to explore giving back something substantial to his college where he started his small business journey. One the one hand, he could keep giving $6000 a year for the next 40 years for a total donation of $240K or use life insurance to nearly double the impact of an equal contribution. Take a look at our interactive case study to see the impact of this deposit into a life insurance plan! 
(E & OE)
Here's a link to a real-life example where we helped a client set this up:
View the example of how much more Gilberto could have given using Life Insurance.
John F. Doe

If you want to learn more about how Life Design Analysis can help teach your clients how to secure their family's financial future, Sign up Free

Already an LDA Subscriber and want help with this concept book a training session with Jon or Nik from our support staff to see how Life Design Analysis can help your practice (just click on their names).