In our previous blog post we discussed Insurance – The Basics and wrote about some of the more common types of insurance and reasons our clients add insurance to their financial plan.

What’s less widely known is that you can purchase an insurance policy on yourself to leave a legacy. This is an option for individuals who want to support a charitable organization, and/ or leave an inheritance but their investment portfolio is designed to fund their retirement and their preferred lifestyle during retirement, so they don’t have the luxury of leaving a large legacy or bequest to a favourite cause. For some, a convenient way to leave a legacy for this type of scenario is to include an insurance policy in their planning. Their investment portfolio may also be designed to pay the insurance policy premium as well.

When the policy is triggered, the charity gets the lump sum of cash, which can allow an organization the flexibility to do more than they would with a monthly donation of $50 during a donor’s lifetime. For the donor there can also be some tax benefits to this strategy.

Have questions about charitable giving or any other types of insurance? Give us a call, and we can chat about it.