Many people own life insurance policies that were purchased years ago to protect family members in the event of their death. Today their circumstances have changed. Perhaps the beneficiary of the policy has died, or children are now financially independent adults. Although the policy is still valid it is no longer required for the original reason.
The cash surrender value of the policy can be used to make a gift by transferring ownership of the policy to the QEII Health Sciences Centre Foundation. A tax receipt is issued for this value. With some policies there may be a taxable gain. However, the tax credit should at least offset any tax owing.
In certain circumstances it may be possible to receive a tax receipt for the actual value of the policy as determined by an actuary, instead of the cash surrender value. Close consultation with your insurance advisor and Foundation staff will be necessary in this case.
Francine, age 70, purchased an $8,000.00 insurance policy 40 years ago naming her husband Lucas as beneficiary. Lucas died 10 years ago. The policy is fully paid with a Cash Surrender Value (CSV) including dividends of $10,000. Francine decides to donate the policy to the Foundation. She receives a tax receipt for the CSV.
The QEII Foundation is a participating charity of Charity Life Direct, a company that offers pay-life insurance policies that charities can purchase on behalf of donors, without medical or doctors' visits. That way, donors do not have to commit to a long payment period of a traditional life insurance policy
The information on this website is provided for the general information of donors and friends of the QEII Health Sciences Centre Foundation. It is not intended to be a substitute for professional legal or financial advice. As individual situations may differ you are strongly advised to consult with your own professional legal, estate planning and financial advisors before deciding upon a course of action.