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Life Insurance For a Charity

Life Insurance For a Charity

Some people have a charity that are near and dear to their heart. If you want to leave funds to a charity upon your demise you have the option of obtaining life insurance for a charity (LIFC). Throughout their lives they may give a considerable amount of their time and money to specific charities. Such individuals may also want to continue giving to these particular charities even after they pass on.

Although this may sound somewhat peculiar, there are a number of people that take this particular route. These folks want to ensure that their special charities continue to receive the monies even after a person’s demise. While you may choose to leave monies to a charity via a will, LIFC is usually the best strategy. An individual can leave a specific amount of money for their charity without having to worry about the will being contested.

What is Life Insurance for a Charity?

LIFC sets up an insurance policy so that a charity is able to receive funds upon a person’s demise. In many ways, the charity is the beneficiary. However, there are circumstances where the policyholder can decide that the charity will be the policyholder. It is very important to understand that life insurance for a charity only becomes effective for payout when the policyholder passes away. This is an excellent way for them to be able to make sure that their favorite charities receive income even after their death. In order to keep the LIFC applicable and active, all premiums must be paid in full on a timely basis.

What is the Purpose of Life Insurance for a Charity?

As stated before, the main purpose of life insurance for a charity is to make sure that a charity is able to receive funds upon a person’s demise. Often times people that leave monies to charities usually do so because these charities are close to their heart. They have probably formed some type of relationship with the charity and they want to provide financial support after death. In other cases, a person may just simply decide they want life insurance for a charity because they want to give a specific amount to a particular charity upon death.

Individuals that choose to obtain LIFC have a number of ways of executing this type of policy. Some individuals choose to purchase a new policy where the charity becomes the policyholder. Then there are others that may decide to purchase the insurance policy under their name and then simply make the charity a beneficiary. There are also cases where individuals decide to make their estate the beneficiary and then a certain amount is set aside as a bequest to the charity in the will. Ultimately, the whole idea of LIFC is to provide a charity with monetary support after a person passes away. This is an excellent option for anyone that has developed a firm relationship with a charity. 

How Individuals and Charities Benefit From These Policies?

It should be noted that with LIFC both the individuals and charities benefit greatly. Individuals that choose to obtain a LIFC benefit greatly through a number of tax benefits. The ways in which an individual receives the tax benefits from a LIFC depends on how the policy is executed. An individual can purchases an insurance policy and make the charity both the beneficiary and the policyholder. This way, any premiums that are paid on this particular life insurance policy are a tax-deductible donation.

An individual can decide to make the charity a beneficiary on a pre-existing life insurance policy. However, they will not be able to receive any tax benefits on the premiums paid out. As long as the policy has a cash surrender value, the charity can provide a tax receipt. This receipt is equal to the amount of the cash surrender value. Int this case, the individual will be able to claim a charitable donation credit.

Overall, obtaining life insurance for a charity is an excellent way to support causes that are near and dear to one’s heart after one passes away.

Ten reasons for using a Life Insurance Broker

Ten reasons for using a Life Insurance Broker

We have collected our Ten reasons for using a Life Insurance Broker. Finding the correct life insurance policy can be easy, difficult, impossible, or just extremely frustrating depending on how much time you have to research it and the people who you end up talking to on the phone. Each person you phone with regards to a policy is going to try and get you to sign their policy by telling you about all of the good things, while conveniently glossing over some of the not so good things. Unless you are an expert at reading contract language you may have signed for something you may not have wanted. This is where an insurance broker comes in.

They know the product.

By definition an insurance broker sells insurance. Or to be more precise, in today’s world an insurance broker will connect you with an insurance company and broker the policy deal between you and them. They are aware of what products exist, what the product is and what it means to you in terms of money out and money in.

They know the people.

As insurance brokers tend to deal with lots of people, each with different situations and requirements they tend to have a large portfolio of insurance companies that they deal with, on a daily basis. They know who to phone at these companies to get quick answers. They have contacts that they regularly speak to, who you as a member of the public may never get in touch with. People who can make your process of getting a policy easier.

They know the language.

Insurance contracts are steeped in legal jargon. They have to be, there is a lot of money involved in each policy and every eventuality has to be covered in the document that forms the policy you sign. This language is difficult to follow and comprehend to the layman, but to someone who deals with it every day, it is simple.

Experience with problems.

Hopefully when you decide to take out a life insurance policy there will be no problems. But this is life, there could be lots of problems. You may find that your scuba diving hobby is making the insurance company hesitate and that they are asking you lots of questions about it. You gave up smoking two years ago and the company want a blow by blow account of your smoking history. All of this delays you getting a policy with you sending in the form, getting questions back, replying, etc. Back and forth constantly. An agent will be able to ask you all of the relevant questions, then only come back when they have definitive answers.

It’s their job to shop around.

You obviously want the best policy for the minimum monthly outlay. Unless you get extremely lucky with your first enquiry to an insurance company, this is going to involve you phoning lots of companies to compare prices. Even if you use the internet to do the comparisons before you start phoning you are still going to have to look through a lot of sites before you narrow down your search. A broker will be able to ask you how much do you want to spend, what coverage are you looking for. Then just by looking in his laptop, or case they will be able to pull out a list of companies that have policies to meet your requirements.

They can answer your questions in layman terms.

Phone an insurance company up and query page 3, paragraph 6, sub section 12 of your policy. When you finally get through to someone who is qualified to answer you, the answer they give you will be in pure insurance language, leaving you more confused than when you started. A broker is there to make sure that you are answered in laymen terms, in terms of what it is going to cost you, what the pros and cons are. Basically they are there to explain it to you in a way that you can understand.

They should be impartial.

A good insurance broker should be impartial. They should not be affiliated with any particular insurance company and be able to suggest a number of companies to you when you ask them about available policies. It is there job to find you the best value policy for your situation, not the highest paying customers for an insurance company. If an a broker is unable to recommend a number of different companies, find another broker.

They can sort out problems.

You are travelling to Russia next week on business and need to check if Russia is still a restricted country, and will travelling there affect your life insurance policy. You don’t have time to sit on hold for days on end trying to find someone in your insurance company who actually knows the definitive answer. Your broker is there to help you. Field the question to them, let them use their contacts to find out the answer. Then when they have they can get back to you and let you know if there is anything you need to do.

They are one stop contact.

In theory, once you have a policy you are locked into a company. That company will have a customer support department and should be able to answer your question or handle your problems. In the real world this is not always the case. There are support departments for billing, claims, questions, legal and so on. With a broker, they are a one stop shop for your insurance dealings. Have a problem with your monthly payment; field it to them, a problem with a claim; let them handle it. By using a life insurance broker, you should only ever need to speak to one person.

Peace of mind.

Peace of mind is the last of our Ten reasons for using a Life Insurance Broker, but it is of top importance. Insurance is complicated, there is no question of that. When you sign that policy are you sure that every “t” is crossed, and every “i” dotted? That’s what a life insurance broker is for, to make sure every thing has been covered and to give you the peace of mind you require.

In conclusion, most people are capable of going out and finding a company that will offer them life insurance, and most will find a policy that suits them to a certain extent. But is it worth the chance that when you found the policy you liked, you missed something. Something that could potentially cost you thousands in the future ?

To put it another way; when your car needs to have the breaks replaced, do you take it to a mechanic and make sure that the job is completed properly? Or do you have a look on the internet and do the job yourself? Risking the scenario that when you need to stop you might not have done the job as well as should have been expected?

Life Insurance for Scuba Divers

Canada is known for its largest fresh water lakes in the world which makes it a place or destination to enjoy scuba diving. Many Scuba Divers go to Canada to enjoy this adventurous thing to do. Scuba Diving is known to be exciting more than ever now that you don’t have to rely on a breath hold or air pumped from the surface. It is now a lot safer and a free way to scuba dive by carrying your own air source in a tank. This allows divers to move freely under water more than that with an airline.

Scuba Diving is an adventurous thing to do without any doubt but with the adventurous things comes the risk of injury or dealth. There are a lot of factors to which you can have injuries and suffer problems while scuba diving. You can face injuries while scuba diving due to change in intense pressure, breathing high pressure gas can cause some problems for you, decompression sickness, oxygen toxicity, failure of diving equipments, loss of intense body heat and much more. But despite of so much risk you must be thinking why one would go scuba diving? Well the one who has already done or the experts in the field says – “There is nothing that we can compare with scuba diving deep under the water.”

Despite all these risk you must take some of the precautions if you are going for scuba diving. But what’s the most important thing that you must have while doing scuba diving? Well, the most important as well the most essential thing you must have is a life insurance policy. As a scuba diver you never know when you will be struck with trouble and lose your life.

So, if you are a scuba diver we will tell you the qualifications that is required by Canadian Life insurance companies. Below are the things that you must have before going to a life insurance company to obtain coverage.

  • Your Experience in Scuba Diving, along with the certification in the field
  • Your medical history
  • Dive Location
  • Diving Activities you do
  • The depth and frequency of dives as well as if you dive at night.
  • Your lifestyle

There are three things that likely to happen after applying for a life insurance policy, the policy will be issued standard, rated or even declined. If you are a diver who dives beyond a depth of about 120 feet under the water then you will be rated. And if you are suffering from some medical diseases like cardiovascular related problems or any respiratory breathing problems you will likely be declined by the insurance carrier. If declined you may opt for another option to get a non-medical life insurance coverage. You can opt for this non-medical insurance if you are 20 to 85 years of age, however premiums tend to be much higher for this type of policy.

So, these are the options available for you regarding opting for life insurance as a scuba diver as per Canadian life insurance standards. You must carefully read out all the terms and conditions attached to that particular life insurance plan and make sure that you are opting for the right plan for yourself and your family. Enjoy the diving and stay safe.