Life insurance beneficiaries can be third parties, such as a charity. Many people do will money over to charities and also give life insurance to charities as final well wishes.
Recent studies have found that lower-income people were more generous and charitable to those in need. According to research, they are more committed because of deeper feelings of empathy and compassion-the key ingredients to sharing the equality of wealth.
Regardless of their financial status, many decide to give in the end, for whatever reason. Maybe, those that had and spent more on themselves and family early on decide to give back to a worthy cause, truly making a difference for others. Maybe others had an experience that has taught them the importance of charitable giving.
The purpose of life insurance is not always used to pay final expenses. It can help to pay off a home, children’s college expenses and to take care of your favorite charity.
A structured life insurance policy allows money to grow tax-fee and the death benefit is usually transferred to the beneficiary tax-free as well. You can also assign ownership to the charity and you can receive an income tax deduction the year you turn it over.
Contrary to public belief, middle-class Americans are able to secure life insurance policies so it is the ordinary that have an opportunity to give to that special nonprofit organization.
And if you do choose a charity, it is important that you research the charities positive assessments. Look into your own community charities where you can volunteer as well and learn more about how they operate. Ask your friends and family.
For example, a coworker expressed their involvement in the following organization located in Downers Grove, Illinois, just southwest of Chicago. Hope’s Front Door changes lives for approximately 4000 homeless residents as they come through the doors. It serves over 300 client visits a month to families and individuals who are suffering in the community.
In many instances, those in desperate need come for immediate assistance which Hope’s Front Door provides in gas vouchers, food vouchers, rail passes, sometimes an overnight hotel respite stay. Hope’s Front Door has also become a first responder to clients in poverty, addressing the immediate physical and emotional needs while also providing long-term solutions.
But the pride of Hopes Front Door is the Pathways to Employment program. Over 2500 local people are registered to receive weekly updates on local employment opportunities. Several companies have responded and interviewed people, even providing on-sight training for jobs like welding, CDL certification for bus driving and other manufacturing positions. In just a few months, twelve of Hope’s Front Door clients are moving from government assistance to healthy steady salaries and stability.
Recognize, too, that the type of life insurance is important. Term insurance ends at a specific time and if the owner lives beyond the end of the term, your charity will not receive benefits. Whole life policies may be better, but talk to a qualified financial planner for the best way in giving.