Can you put a charity on your life insurance policy?
Can you put a charity on your life insurance policy?
Title pretty much says it all.
But, I'm wondering, like I have both my parents and my nephew on my military life insurance, can I put a charity on the policy to recieve money if something happened to me?
But, I'm wondering, like I have both my parents and my nephew on my military life insurance, can I put a charity on the policy to recieve money if something happened to me?
Sorry if this is a really stupid question, I'm only 17 and don't have the slightest clue about LI policys.
Thank you.
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9 Responses
1.31.2010
Best Answer – Chosen by Voters The answer is yes. You can list multiple beneficiaries on your policy and it can be anyone or any organization. Source(s): http://finance1o1.blogspot.com
1.31.2010
Judy is wrong. As mentioned MANY people other than retirees will take out a policy where the charity is the beneficiary. Depending where you live (if you're local tax laws state that charitable donations are a tax deduction), the premiums paid when a charity is a benefiary would be tax deductable as well. As a 17 year old you would be able to havea temendous impact on a charity since the premiums you pay would be VERY minimal on a limited pay whole life policy and the payout would be substantially more. For example, over the 20 years, you might end up paying $15,000 or so, but the payout whenever you died would be $100,000. It would be difficult to have a savings account go from $15,000 of contributions to $100,000 without some MAJOR economic incident that would cause intrest rates to skyrocket.Also, Mbrcatz is also wrong. Insurable intrest has absolutely NOTHING to do with the beneficiary. Insurable Interest has to do with the owner being different than the insured person. For example, if a charity took a policy out on you and you were not associated with that charity for any reason at all, then they could not take that policy out. Insurable interest relates to the OWNER (not the beneficiary) experiencing an financial loss due to the insured persons death. You can however name ANYONE (or any organization or even business) you want as a beneficiary on a policy that you own. For example, I could take out a policy on myself, pay all the premiums on my own and make you the beneficiary. I have absolutely no relationship to you nor have I even met you, but I can name you or anyone else here a beneficiary if I wanted to.So to answer your question, yes, you can name a charity as the beneficiary (in most cases…check with the insurance company to make sure they don't have their own policy that doesn't allow it). One to be aware of is this. If you name a charity as the beneficiary and claim it as a deduction on your taxes it has to be irrevocable (meaning you can't/it's VERY difficult to change it to someone else), or if you do change it, you will likely have to pay back all the previous deductions that you made. Source(s): Insurance broker that sells insurance polices for the purpose of charitable giving.I have an insurance policy with a charity as a beneficiary.I also work provide policies for a local organization that distributes the proceeds from insurance policies to charitable organizations.
1.31.2010
That is something a retired person would do.And.. they would set it up as a trust – not part of a life insurance.Why not open a savings account and put the beneficiary as a charity?That would be a better option, since some life insurance polies expire, or are sometimes cancelled.Someday in the future you may see that life insurance premium going up, up, and away.You may want to cancell it.A savings account or a trust fund at a brokerage is a much better way to go./
1.31.2010
Judy is not correct. Many people do that – not just retirees. People don't 'open a savings account' for a charity. Yes, you can put the charity down as the primary beneficiary, as one of the primary beneficiaries to receive part of the benefit or you could list them in whole or in part as a contingent beneficiary (i.e. list your parents first and if they're deceased the charity, etc…).You can name ANY legal entity…person, trust, company, charity, etc….
1.31.2010
When you first take the policy out, the person you name as beneficiary must have an insurable interest. Typically, this would be a parent, spouse, child – someone who has something financial to lose, by your death.You cannot take out a policy, initially, naming a charity, as they don't have a financial loss if you die.BUT, once you've had the policy, you can CHANGE the beneficiary to anyone you want – including that charity.
1.31.2010
You certainly can set up your life insurance to issue money to any person or charity you like. In order to set this up, you would likely need someone familiar with all of the paperwork to help you, as depending on the charity, or the percentages, it can get tricky.I commend you on your desire to not only ensure your family has the necessary funds to handle any final arrangements, but for thinking of helping people who might not otherwise be able to help themselves. Source(s): I am a licensed insurance specialist in Illinois, Indiana and Wisconsin.
1.31.2010
Yes you can. I admire your sincerity. As long as the Charitable Institution is registered and as a legal entity. Source(s): I recently got my auto insurance quote from http://www.save489.com/home/ and I saved about $600
1.31.2010
In general, yes you can. You're talking about SGLI, so see here:http://www.insurance.va.gov/SGLISITE/SGL…
1.31.2010
yes, you can out a charity down or any other organization you want as long as its legal.