Donors often recognize the importance of KIDTHINK’s work but they do not necessarily have the capacity to support it to the degree they desire. Utilizing life insurance, you can leave a substantial legacy and forge true change in the mental health space while incurring minimal relative costs and receiving a substantial tax credit. The life insurance product itself is the same as any other life insurance product. However, who you name as the beneficiary or as the owner adjusts the strategy such that KIDTHINK benefits and you secure a tax credit.
There are multiple ways to structure an insurance strategy for the purpose of charitable giving. Your individual estate planning needs will help determine when the resulting tax credit would be of best use to you. Detailed below are three of the most common implementation strategies:
- Premiums qualify for the tax credit
- Death benefit does not produce tax credit
- KIDTHINK maintains control of the policy
After reviewing your unique situation, your advisers will guide you to the best option.
Below are a few price estimates which assume non-smoker status and standard health:
A brief review of the above makes clear how you can exponentially enhance your giving ability while simultaneously capitalizing on strategic tax benefits. Part of what makes giving to charity by means of life insurance so wonderful is the dynamic nature of the process. Premiums and death benefits are highly flexible; this allows the strategy to fit neatly within a wide array of financial conditions.
Anyone eligible for life insurance can apply for life insurance for charitable giving. If you’re passionate about children’s mental health, can afford to cover the monthly premium payments for the required duration, and can benefit from the resulting tax credit, life insurance for charitable giving is a great fit for you!
