A life insurance policy is an excellent way to make a much larger gift than might ordinarily be possible. Through it, you can show generosity without compromising your family's financial security. Rather than making a considerable one-time gift, you pay your regular premiums. Those modest amounts will grow to an impressive gift. A gift of life insurance is separate from your estate and does not reduce the amount available to your family. There are no estate costs and the full amount of the insurance passes to the Lung Foundation of Saskatchewan. There are many kinds of life insurance and, of course, it is up to you to decide which kind you prefer.
There are several ways to make a charitable gift of life insurance. Upon establishing an insurance policy you can name the Lung Foundation of Saskatchewan as the beneficiary to the policy or you can transfer ownership to the Lung Foundation of Saskatchewan. In both cases you pay the annual premium and when you pass on, the Lung Foundation of Saskatchewan receives the full value of the insurance to invest in the community.
Another option is to make a stipulated annual donation to the Lung Foundation of Saskatchewan and ask us to use the donation to pay the premium on an insurance policy. The Lung Foundation will take out the policy for you and the Lung Foundation of Saskatchewan will be the beneficiary.
In each case, you get a receipt for the full value of the annual premium. This receipt entitles you to a tax credit, thus reducing your income tax.
You may also make your estate the beneficiary of an insurance policy you establish and provide for a corresponding gift to the Lung Foundation of Saskatchewan in your Will. We do however suggest you use assistance from a financial and legal adviser, with this option in particular.
The amount of the gift is guaranteed and is not reduced due to taxes, probate or administrative costs. Premium payments are eligible for tax receipts, and unlike an RRSP, life insurance is not taxable and is distributed intact after death.
The Foundation will only consider receipting premiums for insurance policies where the Foundation is named irrevocably as the Beneficiary.