Last month, Canada Life launched a first-of-its-kind, single payment life insurance product designed solely for charitable giving. This innovative product, called My Par Gift, is changing the landscape of charitable giving. The simple one-time premium payment donation utilizes permanent life insurance and allows people to have a significantly larger impact immediately. Using life insurance essentially magnifies your donation. Simply put, a dollar of premium purchased buys much more than a dollar of death benefit especially over time as the policy grows.
Here is what a $50,000 donation can look like. A non-smoking female, age 40, could donate a $50,000 gift to a registered charity of their choice, and the charity would receive the $50,000. If instead, the $50,000 is used to purchase and to donate to the charity with Canada Life’s My Par Gift, the donation immediately becomes a benefit of $106,000 and has the potential to increase overtime with the growth of the policy. Essentially, the donation is more than doubled just by using life insurance to give.
Also, the registered charity chosen by the donor is the owner and the beneficiary of the policy. This gives the charity control and flexibility over the policy. The charity can choose how they would like to use potential dividend growth. For example, they may 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. Overtime the life insurance policy builds cash value and the charity will have access to these funds which they can use in many ways during the insured person’s lifetime.
This single premium payment has tax advantages to the donor as it is eligible for an immediate donation tax receipt from the registered charity.
This novel insurance product empowers people to easily leave a legacy and support their most loved cause. Give your preferred charity a gift that is worth more than a cash donation. Speak with your insurance advisor today.
Photo by Lina Trochez on Unsplash.