Life Insurance

YOU CAN BE AN AGENT OF HEALING, COMFORT, AND HOPE

Life insurance can be crucial in providing the security a growing family requires or for support in times of need. As family needs change and children grow, many of us find ourselves with policies which are really no longer essential to our family financial plan for the future. These policies are, effectively, an idle asset that can be used to create a win/win situation for your financial and tax planning and for the Anglican Church.

Next to bequests, life insurance is probably the most common deferred gift received by Canadian charities.

There are several ways you can use life insurance to make a gift to the Anglican Church. You can donate a policy you own but no longer need, or buy a new policy as your gift. Some donors even find they have other assets they would like to contribute to the church and are able to use life insurance to replace the value of those assets for their heirs.

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Ways to Give Life Insurance to the Anglican Church

1. Transfer Ownership of a Paid-Up Policy

TAX BENEFITS TO THE DONOR:

The donor is entitled to a donation receipt for the total cash surrender value at the time of the gift. The donor also enjoys the satisfaction of making a larger than usual gift from assets rather than income to the church and has the knowledge that their asset will definitely go to the ministry of the church.

VALUE TO THE CHURCH

A gift of a paid-up life insurance policy is the equivalent of an outright gift of cash. This is because the charity can, if it chooses, immediately surrender the policy for cash. More likely, the Church will retain the policy until the passing of the insured donor and then collect the death benefit. Meanwhile the cash surrender value of the policy continues to grow benefiting the ministry of the church.

2. Transfer of Ownership of an Existing Policy on which Premiums are still Owing

TAX BENEFITS TO THE DONOR

The donor is entitled to a tax receipt for the cash surrender value when the policy is transferred to the church and a tax receipt for subsequent premium payments.

In another example, a tax receipt is also issued in an instance where the donor makes a cash contribution to the church which the church then takes and uses the donation to pay policy premiums.

As a donor you may wish to make a substantial gift without dipping into other assets. This type of gift is most suitable for donors who have the cash flow from income to continue to make premium payments. Many choose this gift of life insurance to truly make an impact at an annual cost that is not prohibitive to their life style.

VALUE TO THE CHURCH

Assuming premium payments continue uninterrupted, the cash surrender value will increase each year and/or the church will eventually collect the death benefit.

3. Purchase of a New Policy, initially naming the Anglican Church as owner

TAX BENEFITS TO THE DONOR

A donor who has some discretionary income but cannot afford to contribute capital assets to the church can buy a life insurance policy and name the church as the owner. For example, Mrs. Smith buys a $50,000 policy and pays annual premiums of $1,600 for five years. She gets a donation receipt and a tax credit of $720 (45%) of each premium paid. Her out of pocket cost to assure a future gift to the church of $50,000 is only $880 a year for five years!!!

VALUE TO THE CHURCH

A substantial $50,000 gift that will have a major impact on ministry

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GIFTS OF LIFE INSURANCE TRULY MAKE AN IMPACT ON MINISTRY…

We know from talking to donors that you want your gift to truly make an impact on the lives of the people in your community. Gifts of life insurance create that opportunity as donors are able to give significantly larger gifts than they might otherwise be able. Of course, we will work with you to ensure your gift is dedicated to ministry projects dear to your heart.

SO MANY WORTHY MINISTRIES…

Anglicans in Niagara have many options when making gifts to the church.

1. St. Andrew's Church, or to a specific ministry of St. Andrew's by the wording of your will.

2. The endowment funds of the Anglican Church Ministries (ACM) Foundation:

3. The Synod of the Diocese of Niagara

4. The Primate's World Relief & Development Fund (PWRDF)

5. The Anglican Church of Canada

(This text provided by the Diocese of Niagara Planned Giving webpage.)