Charitable Gifts of Insurance are a Powerful and Under-used Tool
An Innovative Insurance Product is Changing Charitable Giving
The excitement was notable among financial advisor circles and charities when Canada Life My Par Gift was unveiled earlier this year.
The new one-premium charitable gift policy was developed in consultation with insurance professionals with decades of experience alongside the Canadian Association of Gift Planners.
The policy promises to simplify charitable giving through insurance for everyone involved, and it creates a low-risk and high-return option in the tool box for advisors and donors.
“My Par Gift is an innovative, first-of-its-kind, insurance product designed for charitable giving using life insurance.”
Joseph ven der Buhs is a Saskatoon-based Certified Financial Planner and Certified Life Underwriter with Mountain Strong Financial, and he describes My Par Gift this way: “My Par Gift is an innovative, first-of-its-kind, insurance product designed for charitable giving using life insurance. This is a single premium product.
“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.”
For people planning to make a donation to charity, life insurance policies offer several benefits:
- Life insurance can unlock significant donations for charities important to you;
- You can make a large charitable donation without reducing the inheritance for your children and other loved ones;
- Your gift of life insurance will go to your charity beneficiaries quickly because the policy is outside of your estate and not subject to probate;
- You can choose tax benefits during your lifetime or for your estate, depending on how you structure your gift and policy.
By working with your insurance advisor and Saskatoon Community Foundation, you can determine how to make an insurance gift that is best for your financial plan, reflects your values, and creates the legacy you want to leave. If at any time you want to make a change, you can come to the Foundation to make changes, at no cost to you.
While insurance gifts have tremendous potential, they can be complex and require a thorough understanding to ensure you are using the right policy for your giving.
“Having worked in the charitable gifting space as an advisor…for the last 25 years, this new option of making a one-time payment makes it simple for the person making the donation (and for the organization) receiving the gift as My Par Gift provides the charity with options,” explains Joseph.
“The flexibility is significant and a welcome addition to the charitable gift planning field.”
Saskatoon Community Foundation has been a trusted partner in local charitable giving since 1970, and works closely with wealth management and insurance professionals as part of donors’ estate and charitable gift planning advisory teams.
