People usually buy life insurance in Palm City FL to provide for their families and pay for their final expenses. A life insurance policy also can name a charitable organization as the beneficiary.
Cash donations and gifts of necessary supplies are valuable for tax deductions while the person is still alive. Naming the organization a beneficiary of Life Insurance in Palm City FL can provide an even larger amount of money than the person was ever able to make before.
Getting an Idea
Sometimes a person first gets the idea for this type of donation when the organization mentions the option in a fundraising letter. In other cases, the person may have heard a friend or relative talking about making this choice, or may have read a news article about an organization receiving a substantial amount of money as an insurance beneficiary.
Complicated Scenarios
It’s helpful to meet with a financial planner to discuss the possible complexities of using life insurance for charity. For example, sometimes a person passes away long before this should have been expected. What happens if the consumer had taken out a loan against the policy? The policy would now have an adjusted value accounting for the loan. In addition, there may be tax implications.
Changing the Beneficiary
There are times when a current policyholder wants to change the beneficiary from a family member to a charitable organization. The current beneficiary might be the spouse, for example, but now that spouse has died or the couple is getting a divorce. Sometimes a rift develops between the policyholder and the original beneficiary.
Concluding Thoughts
There is a lot to learn about the process. Representatives from an agency such as Owen Insurance Group can answer questions the person might have. Browse our website to get started.
Once somebody decides this type of donation would be a great idea, it’s important to get the ball rolling. The subject of death is an uncomfortable one, but the reality is, this can happen at any time to anybody. Continuing to delay setting up a policy with the desired beneficiary could eventually mean that organization misses out.
