Life insurance provides another way to multiply your charitable gift.
Rather than utilizing today’s dollar, we can arrange for a bank to pay 100% of the premiums on a life insurance policy. The donor only needs to be pledged collateral to guarantee the premium and pay the loan interest.
Here’s How it Works
- We use only highly-rated life insurance companies, chosen from among the top handful of insurers in the world based on all factors (solvency, stability, customer service, etc.). We use an insurance policy that has been specially created by insurance actuaries for the purpose of maximizing investment performance inside the policy, and includes guarantees as to interest rates, mortality charges, service fees, etc. Key to this program is that you participate on the upside in the policy investment performance with no downside risk.
- The lender pays the insurance premiums. The donor only pays the interest on the loan, and the policy will stay in force for the rest of the donors life (and payable to the charity at the donors death).
- The premium loan will be provide for a very low rate of interest.
- The insurance policy will be the primary collateral for the loan. The donors investments will provide secondary collateral until such time as the policy’s cash value exceed the policy loan. At that point the donors investment funds will be fully released from the assignment.