What is Charitable Giving using Life Insurance ?

September 25, 2019








Millions of Canadians make donations to the charities of their choice each year. However, many donors are left wishing that they could do more for the charities that they love.


There are 3 major reasons to use life insurance as a means of charitable giving:

1. Insurability Advantage: Small insurance premiums buy large death benefits, especially when you’re younger and healthier

2. Flexibility: There are two ways a charity can benefit from a life insurance policy.

  • You own the policy and name the charity as the beneficiary
    • With this option you are the owner of the policy. This allows you to update and make changes to it as you deem fit.
    • Presents an advantage as the death benefit qualifies as a tax credit on your final tax return
    • Premiums paid are not a tax credit to you
    • The charity can be named the beneficiary either through a will or directly on the policy.
  • You can transfer ownership of the policy to the charity 
    • With this option the charity is the owner of the policy which allows them to update and make changes as the see fit
    • Death benefit does not qualify as a tax credit on your final tax return
    • Premiums paid are a tax credit to you

3. Certainty: You’ll have peace of mind knowing you’ve left a lasting legacy.

Contact on of our advisors here to see which solutions are the best for your future financial situation.