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A Life Settlement Supports Institutional Advancement
In a planned giving program, the option of a Life Settlement for certain donated policies can make the difference between budget cuts and continuing on with services. When contributions are down or capital is needed, charities and other nonprofit organizations need not liquidate assets or wait decades to receive the proceeds from death benefits of donated life insurance policies. A deferred gift intended for the continued sustenance of the institution may be more useful in maintaining the financial strength and sustainability with a more timely influx of cash available from a life settlement.
A Life Settlement Option is Worth Exploring
Some organizations making premium payments for donated policies find the expense overwhelming. Out of necessity the policy may be surrendered or allowed to lapse. When treated as an asset, however, the eligible donated policy (with the insured's consent) can be sold to the highest bidding reputable financial institution for a lump sum of cash that is substantially greater than the cash surrender value and less than the death benefit. The purchaser or funder takes over the responsibility for all following premium payments and becomes the new beneficiary of the policy. Download the Whitepaper, "Life Settlements for Charitable Organizations: Procuring Needed Capital from Donated Life Insurance Policies"
In a scenario where the potential donor is being solicited for a large contribution, an option would be for the donor to sell an unwanted or unnecessary life insurance policy and then donate the proceeds. This may result in a higher tax deduction than donating the policy.*
T-Horizons, LLC provides the appropriate contacts and resources to help organizations and donors realize the full value of their policies.
* T-Horizons, LLC does not provide legal, accounting, tax or financial advice although our experts in life settlements are happy to provide education and address concerns with your professional advisors. Donors are advised to speak with their own tax advisor.
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