A gift of life insurance is an affordable way to make a real difference. A modest annual premium, paid over time, can result in a significant future legacy. Next to bequests, gifts of life insurance are the most common deferred gifts received by charities.
If your life circumstances have changed and your life insurance policy has outlived its original purpose, consider donating it to a charitable organization such as Habitat for Humanity.
A gift of life insurance is not subject to probate fees or settlement delays, and cannot be contested. That means the proceeds from your policy can be put into action right away.
Benefits of Donating Gifts of Life Insurance to Habitat for Humanity:
- You will be helping hundreds of working, lower-income families build strength, stability, and self-reliance through affordable homeownership.
- Gift proceeds directed to Habitat for Humanity are not subject to probate and estate fees as your life insurance exists outside the estate settlement process.
- The beneficiary designation is revocable meaning it can be changed if your financial and/or life circumstances change.
- When Habitat for Humanity (Habitat for Humanity Sault Ste. Marie & Area) is the named beneficiary, it will issue a charitable donation receipt for any proceeds received after death. This charitable donation receipt creates a tax credit on your final tax return.
Here are three ways to arrange this gift:
- Name Habitat for Humanity Sault Ste. Marie & Area as the primary or co-beneficiary of a life insurance policy. Your estate will receive a charitable donation receipt from Habitat for Humanity Sault Ste. Marie & Area upon receipt of the benefit.
- Name Habitat for Humanity Sault Ste. Marie & Area as the primary or co-beneficiary of a group life insurance plan (current employer). Habitat for Humanity Sault Ste. Marie & Area will benefit only while you are an employee of the company.
- Transfer a paid-up life insurance policy to Habitat for Humanity Sault Ste. Marie & Area by naming Habitat for Humanity Sault Ste. Marie & Area as the irrevocable owner and beneficiary. You will receive a charitable donation receipt for the fair market value of the policy (determined by an actuary) upon receipt.
What are my next steps?
- Make an appointment with your financial or insurance advisor or benefits administrator to review your personal and financial situation and goals.
- Request a Change of Beneficiary/ Ownership Form from your insurance company or your employer’s benefits administrator. Designate Habitat for Humanity Sault Ste. Marie & Area as the primary or co-beneficiary of your policy.
- Contact Habitat for Humanity Sault Ste. Marie & Area to inform us of your gift to ensure we honour your gift intentions as you wish.
We are here to help
Should you decide to leave a gift of life insurance to Habitat for Humanity (Habitat for Humanity Sault Ste. Marie & Area), we hope you will share your decision with us so that we can express our gratitude today. Your gift intention will be held in strictest confidence.
The correct legal name to include is:
Habitat for Humanity Sault Ste. Marie & Area
111 Elgin Street, Suite 303
Sault Ste. Marie, Ontario
Charitable Registration # 865217756RR0001
For More Information:
Contact Chelsey Foucher at (705) 575-0020 ext. 224 or firstname.lastname@example.org to discuss your particular situation and ask any questions you may have about supporting us with a gift of life insurance.
Let’s work together to ensure your legacy lives on.
This information and material is intended to provide general examples and reference tools for understating the way in which charitable gifts may be made to Habitat for Humanity and is for illustration purposes only. Habitat for Humanity does not give legal or financial advice.
Habitat for Humanity strongly recommends donors review this information and material and consult with independent legal, financial and/or tax advisors. This will ensure you receive appropriate legal advice, your financial goals are considered, your tax situation reviewed and your legacy gift is otherwise tailored to your personal circumstances.
Habitat for Humanity protects the privacy of all of the information that you share with us. The personal information that you provide to Habitat for Humanity will be used to provide tax receipts, to contact you regarding your gift, and to keep you informed of other Habitat for Humanity events. Habitat for Humanity maintains a strict policy of honouring donor privacy. Under no circumstances will Habitat for Humanity share, trade, or sell any of our donor information.
*Updated October 21, 2020