Give a gift of life insurance

Give a gift of life insurance by donating an existing policy or creating a new one.

gifts of life insurance

Give a future gift that will make an impact for generations to come.

When you purchase a life insurance policy, and make the QEII Foundation both the beneficiary and owner, you will receive a tax receipt for the annual premiums paid. This allows you to make a substantial future gift at a considerably reduced after-tax cost.

Existing policies may also be donated to the QEII Foundation. You will receive a tax receipt for the fair market value of the policy. While there may be a taxable gain to be reported as regular income when the policy is donated, the tax credit from the donation will equal or exceed any tax owing. Any subsequent premiums paid on the policy will be eligible for a tax receipt, as above.

A charity may be named a beneficiary of a policy without transfer of ownership. In this case an immediate tax receipt is not issued, but your estate will receive a tax receipt when the policy is paid upon your death. The receipt will produce a tax credit for your final tax return.

Plan for the future

There are several ways to make a gift of life insurance:

Purchase a life insurance policy and make a charity both the beneficiary and owner. With this option, you will receive a tax receipt for the annual premiums paid. This way, you are able to make a substantial future gift at a considerably reduced after-tax cost.
Assign an existing policy to a charity. You will receive a tax receipt for any cash value in the policy. While there may be a taxable gain to report as income, the resulting tax credit could be greater than any income tax triggered by the donation. In some cases, it may be possible to receive a tax receipt for the fair market value of the policy as determined by an actuary (less any policy loans outstanding).
Name a charity as a beneficiary of a policy without transfer of ownership. In this case, an immediate tax receipt is not issued, but your estate will receive a tax receipt when the policy is paid. The receipt will produce a tax credit for your final tax return.

A life insurance policy naming a charity as a beneficiary is processed outside of your estate and therefore, is not subject to probate taxes or challenges to your will.

All discussions are held in strict confidence and do not require any commitment on the part of the donor.

Get in touch to learn more:

Should you have any questions or require additional information about leaving a legacy gift, our charitable giving advisors are available to assist you and your advisor:

Geoff C. Graham, CFRE

Senior Director, Charitable Giving Advisor
geoff.graham@qe2foundation.ca
902 717 5998

Click here for our online form to request additional information.

Resources for professional advisors:

Professional advisors are in a unique position to explore how clients can support charitable causes important to them through their financial or estate plan. If you are a professional advisor interested in bringing philanthropy into your business model, click here.