Legacy Giving Policies
There’s no one-size-fits-all length. It’s recommended to choose a term length that covers the nonprofit at least until:
You retire
Your mortgage is paid off
You reach your savings goal
That way, you may have more financial freedom to determine how you wish to continue to support your passion and nonprofit(s) of choice.
Stop waiting and get one right now! If you’re passionate about making a difference in this world and want to donate like a millionaire without spending the money – Life Legacy has got you covered. So if you’re a U.S. citizen or permanent resident between the ages of 20-65, we welcome you to apply now. The world is counting on you to make a difference and an unforgettable legacy.
Planned giving is also referred to as gift planning or legacy giving. It enables philanthropic individuals to make larger gifts to charitable organizations than they could make from ordinary income.
In short, a planned gift/legacy giving is any major gift, made in lifetime or at death as part of a donor’s overall financial and/or estate planning. These include gifts of equity, life insurance, real estate, personal property, or cash.
For Life Legacy, members achieve planned giving/legacy giving by leaving a life insurance policy to a nonprofit or charitable organization.
Once you submit an application on Life Legacy, underwriting begins. Underwriting is the process insurance companies use to determine whether they are able to offer insurance coverage to applicants, and the premiums they’ll charge. Factors such as the applicants age, sex, health and lifestyle contribute to the insurance company’s decision during the underwriting process.
Term life insurance is known to be the most simple and affordable option when compared to other types of insurance. Term life provides coverage for a set period of time or “term” that typically lasts 10-30 years, and is designed to protect your beneficiary (in this case, the nonprofit you’ve selected). If you perish during the term period, your beneficiaries receive a lump-sum payment (also known as the “death benefit”). When choosing, select a term based on how many years you need coverage.
During the term, you’re required to pay a monthly premium for the term to keep the policy in place/active (similar to car insurance or a subscription). If you were to die during the term, whoever you designate as the beneficiary will receive the lump-sum payment from the policy.
If you live through the duration of your term, you’ll have the option to either elect to let your policy to end, or in some cases, you’ll have the ability to renew your coverage. Alternatively, you can re-apply for a new policy – but keep in mind, insurance premiums (particularly for life insurance) increase as you age. Re-applying after your initial term means your rate will be much higher, so consider a term that’ll last until you anticipate no longer needing coverage.
If you perish after the term ends and you haven’t renewed your coverage or purchased a new policy, no benefit will be paid to your beneficiary. So do your best to ensure that the nonprofit(s) you’ve selected as beneficiaries are covered.
A Legacy Giving policy is unique to Life Legacy. This type of policy allows members to easily create simple and affordable ‘life insurance’ policies with nonprofits/charities listed as the beneficiaries of the death benefit.
This provides our policyholders to have a major impact for the causes they’re most passionate about for minimal cost. In other words, no longer do you need to be a multi-millionaire to leave a positive imprint. Instead, leave your lasting legacy behind in a financially affordable and simplified manner through our legacy giving policies.
A death benefit, also referred to as the policy proceeds, is the amount of money that an insurer pays to your beneficiary if you pass away during the policy term. Typically, the policy proceeds are paid in a single lump sum.
In most cases, the death benefit is not taxed. However, if your beneficiary opts to do something less common such as distributing the death benefit in installments while investing it, or including the benefit as part of an estate settlement, there could potentially be tax penalties for the beneficiary. Always double check with an accountant or financial advisor if you believe this applies to you or your beneficiaries.
A Life Legacy beneficiary is the trust/nonprofit(s) designated as the recipient of the policy proceeds after the death of the insured. The beneficiary submits a claim to the life insurance company for the policy proceeds. You, as the policy owner, can decide which nonprofit(s) to designate as your beneficiary (or beneficiaries).
Our platform aggregates the top rated 4-star charities provided by charitynavigator.org. The listed charities range from across various nonprofit causes from civil rights, education, healthcare, environment and several others. Our goal is to provide access to a diverse range of impactful and safe nonprofits to take out a Legacy Giving policy for. However, if you don’t see the nonprofit you’re most interested to take a policy out for, simply type the full name of the charity/nonprofit in the open field section or email us directly at support@lifelegacy.io and we’ll immediately assist you.
Yes! You can absolutely get a Legacy Giving policy even if you already have a life insurance policy – we encourage you to have both! A traditional life insurance policy will provide coverage for your loved ones, if you were to pass away during your term – whereas a Legacy Giving policy will provide coverage for the nonprofit you wish to grant the policy to. By having both, you’ll not only protect your loved ones, but also protect the longevity of a cause you’re passionate about. After all, we want to help you leave an everlasting legacy!
Right now, we allow our Life Legacy members to have an upwards of 4 nonprofits as beneficiaries on their Legacy Giving policies. Have questions or need further customization, email us at support@lifelegacy.io.
Traditional life insurance policies provide coverage for your loved ones whereas Legacy Giving policies provide coverage for a cause or nonprofit you’re passionate about supporting..
In short, the key difference between our Legacy Giving policy and a traditional life insurance policy is the “death benefit” is awarded to a nonprofit/charity versus a person(s).
Nonprofits collect the policy proceeds (a death benefit) when a policyholder passes away. For example, if John Doe passes away during his 30 year term policy for $100k – Life Legacy’s insurer will pay the nonprofit John Doe selected a $100k death benefit. Life Legacy’s legacy giving policies are among the largest gifts a nonprofit will receive, often 200 to 300 times the size of annual gifts. Legacy Giving policies are vital to nonprofits’ longevity and ability to carry out their mission. Our policies also provide additional income to help sustain and support fundraising results, better-allowing organizations to weather the fluctuations in charitable giving. After all, we’re here to help make the world a better place!
At the moment, there isn’t a tax break for legacy giving policies (also known as planned giving).
To receive a tax break, it’ll depend on the asset used to fund the gift. For instance, if the gift was made during the donor’s lifetime or at death, and whether the donor retained an income interest from the gift. Below are more guidelines:
Outright, lifetime gifts of cash, or of assets like securities held by donors for more than 1 year (“long-term capital gain property”), are deductible at fair market value.
The charitable deduction for a gift that returns income to donors and/or other beneficiaries, such as a charitable gift annuity or a charitable remainder trust, is the fair market value of the gift asset minus the present value of the income interest retained.
Revocable gifts that will be paid to your organization upon the death of the donor do not generate an income tax deduction. Therefore, donors do not receive a deduction for including a charitable bequest when they write their will, for naming you the beneficiary of a life insurance policy, or for designating your organization to receive the remaining balance of their retirement plan.
Life Legacy allows its members to only have one Legacy Giving policy per person. We prohibit individuals from creating multiple or fake accounts. Please don’t violate these rules, as it could result in insurance fraud – which is a felony.
