Legacy Giving Policies
The younger you are, the more affordable the plan can be! So the best time is 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 21-80, 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 you to make larger gifts to charitable organizations than you could make from ordinary income.
In short, a legacy gift is any major gift, made during your lifetime or after your death as part of your 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 benefit to a nonprofit or charitable organization.
Once you submit an application on the Life Legacy platform, underwriting begins. Underwriting is the process insurance companies use to determine whether they are able to offer insurance coverage to applicants, and also determines the premiums they’ll charge. Factors such as age, sex, health and lifestyle contribute to the insurance company’s decision during the underwriting process. The good news is that most of Life Legacy’s partners offer no-medical test decisions for qualified applicants
Term life insurance is 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 family from financial hardship or provide a gift to charity if you die during the term. Your beneficiaries receive a lump-sum payment (also known as the “death benefit”). When choosing your policy, select a term based on how many years you need coverage.
During the term, you’re required to pay a monthly premium 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 let your policy 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.
Whole life is a common form of permanent life insurance. While term life insurance lasts for a specified duration or set number of years (10, 20, or 30), whole life insurance is structured to last for your entire life with a guaranteed payout at the time of death.
Final expense insurance is a form of whole life insurance that has smaller death benefit maximums (typically up to $30,000) and a streamlined application process. Final expense insurance is commonly referred to as “funeral insurance,”“burial insurance,” “simplified issue whole life insurance,” or “modified whole life insurance.” Final expense life insurance is a great way for older individuals, up to age 80, to ensure the charity of their choice will receive a final gift when you pass.
A Legacy Insurance policy is unique to Life Legacy. This type of life insurance policy allows you to easily buy simple and affordable life insurance policies with nonprofits/charities listed as the beneficiaries of the death benefit.
This allows you to make a major impact for the causes you’re most passionate about for minimal cost. In other words, you no longer need to be a multi-millionaire to leave a significant positive imprint. Instead, leave your lasting legacy behind in a financially affordable and simplified manner through our legacy insurance 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 to the people or organizations receiving it. Always double check with an accountant or financial advisor to determine the tax impact, if any, to beneficiaries..
There may be a tax benefit to giving a life insurance policy. Please consult a financial planner or accountant for details.
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 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.
Right now, we allow our Life Legacy members to have upwards of 3 nonprofits as beneficiaries on their Legacy Giving policies. If you have questions or need further customization, email us at support@lifelegacy.io.
Traditional life insurance policies typically provide coverage for your loved ones whereas Legacy Insurance 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 insurance 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!
