Life Settlements as Charitable Contributions

Learn how life settlements can help RMGDRI

According to a recent report by the Foundation Center, many charities are not achieving their fundraising objectives due to cuts in funding and contributions, as well as time pressures related to day-to-day demands. These issues are forcing them to cut back on staffing and services and, in some cases, to close their doors entirely. Our organization is no different. This has caused us to explore additional ways our benefactors may wish to consider for their charitable giving efforts.

Charitable organizations, like ours, can do two things with any valuable asset: retain it or sell it. This applies to life insurance contracts, as well, utilizing an approach known as life settlements. Policies owned by qualified insureds or charities that were unneeded, unaffordable or simply not meeting one’s expectations can be monetized for amounts significantly exceeding the contract’s surrender value. Many policies are cashed in unknowingly, sacrificing significant sums that could have been realized had a life settlement been considered.

We believe numerous current and potential donors have policies that they’re planning to discard which may otherwise benefit the Rocky Mountain Great Dane Rescue, as approximately one in seven life insurance policies – roughly 85 percent – are  discontinued, and the vast majority of beneficiaries never realize the face value of their policies.

Life settlements capture a policy’s true market value which surpasses the disposal value. Insureds and charitable organizations have been using this tool for the past 15 years. An extensive list of prominent institutional funders – not private parties – acquires the policies so our donor’s privacy and security are protected. For example, Marc settled a policy late last week whereby the surrender value was $2900 and it brought $227,000 to the insured or 78 times more than the surrender value.

For more information about this planning tool and how you can use it to benefit the RMGDRI, please contact:

Marc Ruskin

ChFC, CLU, REBC, RHU

(480) 221-1070

MarkRuskin@rmgreatdane.org