Designating Life Insurance in San Francisco CA for Charitable Donations

Most commonly, people buy life insurance in San Francisco CA to make sure their funeral expenses and final bills are paid for without their relatives having to spend their own money. Whole life insurance, which functions as an investment, also can leave an inheritance for the beneficiaries. People often buy life insurance during young adulthood to provide for their children in case one of the parents dies unexpectedly.

Life insurance in San Francisco CA also can name charities as beneficiaries. This is an advantageous way for someone to leave a lasting legacy by donating to a beloved organization through a life insurance policy. Just a few examples include schools the person attended, religious organizations, environmental organizations, animal shelters and food banks. The cash payment from a life insurance policy can be used to set up a fund for ongoing scholarships or other services.

The person also can set up the policy so it is used for the purchase of land for a park, or the improvement of an existing park or other local feature. Many individuals have strong emotional ties to the town they have lived in most recently or the one where they grew up. This kind of donation makes them feel satisfied about making a significant positive gesture to the area. It’s a good idea to confer with the people in charge beforehand to make sure everything will go smoothly.

This strategy allows someone to make a hefty donation without using any of the estate money that he or she would like to leave to the family. A whole life policy can be paid up in full long before the policyholder passes away, and it can continue to grow as an investment. An entirely separate life insurance policy could be purchased to pay for final expenses. It’s perfectly acceptable to have more than one life insurance policy. Many people have a whole life policy as well as a term policy that does not build any investment. The addition of a term policy is usually very affordable, with a lower premium than whole life policies require.

Pin It on Pinterest

Shares