Here is a terrific way to measure the cost of funding a gift of life insurance to a qualified charitable organization: Divide the face amount of the policy into the after tax cost of the deductible cumulative premiums. ?When you do this, the awesome leverage of the charitable gift becomes readily apparent.
Steve Savant and Don Prehn do their usual terrific job of examining this concept in their video below entitled “Dollars to Charity for Pennies of Cost” featuring an?indexed universal life insurance policy. The cost of the gift comes in at 5 cents for each $1.00 delivered to the charity.
If you’d like more detail on Art and Janie’s plan, see my Blog #54: Dollars to Charity for Pennies of Cost. ?It includes a look at the actual illustration.
Conclusion
The discounted dollars approach can be a very effective way to demonstrate the efficiency of charitable giving. When coupled with life insurance, it can really become dramatic.
InsMark’s Digital Workbook Files
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Digital Workbook Files For This Blog
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