How can life insurance enhance the donations I make?
Do I receive a tax receipt for my donation of life insurance?
Are the premiums comparable to what is available from my insurance broker?
What will happen if I cannot continue with my donations for the full payment period?
Who owns the life insurance policy?
Can I change which charity is to receive my gift of insurance once my plan begins?
Can anyone qualify to use this concept to make a donation?
Are there any medical requirements to qualify?
When does my coverage begin?
Why does the charity receive the premiums for my life insurance?
Does the charity pay a fee to participate in the Charity Life Direct program?
Which insurance company is issuing the Charity Life Direct contract?
What if my favourite charity does not participate in the program?
Where do I contact you?
Q. How can life insurance enhance the donations I make?
A. Charitable life insurance program allows donors to provide for a larger legacy later for a smaller commitment today.
Although charities face challenges today, they also recognize the need to plan for the growing demands of the future.
Q. Do I receive a tax receipt for my donation of life insurance?
A. Donors receive an income tax receipt for the entire amount of the life insurance premiums donated each year.
When the life insurance proceeds are transferred to the charity (at the donors death) there is no additional tax
receipt generated for the donors estate but the funds are received by the charity tax-free.
Q. Are the Charity Life Direct premiums comparable to what is available from my
insurance broker?
A. With the Charity Life Direct program, the premium commitment is only for 3 or 5 years, at which time the program
is fully paid-up. No medicals are required, only a statement of good health at the time of application. Taking all this
into account, the premiums are comparable with other plans.
Q. What will happen if I cannot continue with my donations for the full payment period?
A. Depending on the selected payment period, each donation will provide a certain percentage of paid-up coverage
under the Reduced Paid-up Feature. Once the Reduced Paid-up Feature is activated, the gift amount will never reduce.
Q. Who owns the life insurance policy?
A. The charity chosen by the donor will become the owner and irrevocable beneficiary of the plan.
Q. Can I change which charity is to receive my gift of insurance once my plan begins?
A. As the charity is both owner and irrevocable beneficiary, the plan cannot be changed to a different charity.
Q. Can anyone qualify to use this concept to make a donation?
A. Although it would be ideal for anyone to make this gift to a charity, in order to qualify for life insurance the donor
must be in good health. Each applicant must sign a statement indicating they do not suffer or have not ever
suffered
from any serious illnesses as defined within the application.
Q. Are there any medical requirements to qualify?
A. No. If you can acknowledge truthfully that you do not suffer or have not ever suffered a serious illness as defined
within the application, you are guaranteed to qualify.
Q. When does my coverage begin?
A. Coverage is effective on the date BMO Life Assurance Company receives the application and the first annual premium.
Please
note that the premium must be submitted to the charity in order for you to receive a tax receipt. Please make all
cheques or money orders payable to your charity.
Q. Why does the charity receive the premiums for my life insurance?
A. With the Charity Life Direct program, in order for your premiums to be eligible as a charitable donation and for you
to receive a tax receipt, the charity must act as an intermediary.
Q. Does the charity pay a fee to participate in the Charity Life Direct program?
A. The Charity Life Direct program is offered at no charge to charities, and they are under no obligation when they
participate in the program.
Q. Which insurance company is issuing the Charity Life Direct contract?
A. BMO Life Assurance Company underwrites the Charity Life Insurance Program.
BMO Life Assurance Company is an integral part of BMO Financial Group
Q. What if my favorite charity does not participate in the program?
A. Let us know your favorite charity and we will contact them to outline the highlights of the program and show
them the benefits of being enrolled into the program.
Q. Where do I contact you?
A. You can reach us at info@charitylifedirect.com |
