GIFT OF LIFE INSURANCE
By naming United Way as owner and beneficiary on your life insurance policy or a registered plan such as a RRSP or RRIF, you ensure that any proceeds go directly to United Way. Several tax credit options are available to you with this kind of gift.
PLANNED GIVING
Terry Newcombe is a familiar face at United Way’s Leadership Giving events. Not only is he a generous annual donor, but he is also an expert balloon twister who enjoys sharing this talent with children. A few years ago, Terry purchased a life insurance policy and named United Way as the beneficiary.
This allowed me to make a larger donation to United Way than I thought possible, yet it’s only a minimal part of my current income. I chose to make my gift undesignated because I trust that United Way will invest my dollars where they’re able to do the most good. This community can be a really great place for everyone and that we all play a role in making that happen.
Terry Newcombe
ACT TODAY FOR TOMORROW: CONSIDER DONATING A POLICY NOW
Donating a policy now can take two forms:
- You can donate an entire policy (a paid-up policy or one that requires ongoing premiums to maintain), which will generate a charitable receipt based on the cash surrender value of the policy, along with any accumulated dividends. Annual premium payments will also generate a charitable receipt for you.
- You can purchase a new policy on behalf of United Way, which entitles you to a charitable receipt for any premiums paid.
Example: Michael purchases a new $125,000 policy, naming United Way as owner and beneficiary. He makes 20 annual payments of $1,050 each, receiving a tax receipt for each payment. Assuming a federal/provincial tax credit equal to 50 per cent of the tax receipts, his annual tax savings are $525. His net cost for each premium is only $525, and he makes a future gift of $125,000 for a total net cost of only $10,500.
WHY GIVE LIFE INSURANCE?
- Donors often struggle between a desire to fulfill their own philanthropic goals and a need to preserve their estate for their families. A gift of life insurance eliminates this conflict as it does not reduce the value of your estate. Rather the proceeds are paid directly to United Way and are therefore not subject to probate and other estate fees.
- Give an already paid-up policy and receive a donation receipt for the cash value of the policy.
- Give an existing policy on which premiums are still being paid and receive a receipt for the cash value of the policy and subsequent premium payments.
HOW CAN YOU GIVE?
To learn more about United Way Ottawa and the many giving options available to you, please contact: 613-228-6767; e-mail giving@unitedwayottawa.ca.
