Life Insurance Policies
Life Insurance policies are a great way to support the mission of the Star of the North Retreat House, as they provide an opportunity for the donor to make a larger gift than they would normally make. Life insurance policies are separate and apart from one’s estate, and thus are not subject to taxes and probate fees. The Star receives the proceeds directly and quickly on the death of the donor.
Life insurance policies can be donated in a few different ways, and there are tax benefits associated with each.
- A donor will take out a new policy naming the Star of the North Retreat House as the irrevocable owner. In that case, a tax receipt is issued for the annual premiums paid each year.
- Sometimes a person donates an existing policy that they no longer need, making the Star of the North the irrevocable owner and beneficiary. An example would be a situation where they took it out when they had a young family, but the children are now adults, so the need no longer exists. They would receive a tax receipt for the cash surrender value at that time, and for any annual premiums paid in the future.
- Should the benefactor donate a paid up policy making the Star of the North the owner in an irrevocable arrangement, a tax receipt is issued for the cash surrender value at the time it is donated.
- If the Star as named as beneficiary only, but not owner of the policy, the donor does not receive any tax advantages during their lifetime. When they pass away, a tax receipt is issued to the estate for the full amount of the money received by the Star from the policy.
Benefactors who are members of the Knights of Columbus may be eligible to arrange for a policy through their insurance arm, which operates as a not-for-profit agency. They encourage members to take out policies favoring charities.
What a great way to support the “life” of the Star of the North Retreat House!
If you wish to donate a life insurance policy, or learn more about them, please contact Lucie Leduc, Executive Director, at (780) 459-5511.