Make money off unwanted life insurance

Make money off unwanted life insurance

Consider donating your policy to a charity for lucrative tax credits

  1

by

  1

Single with no dependants and have an unwanted life insurance policy? Consider donating your policy to a charity in exchange for lucrative tax credits, instead of simply letting it lapse and getting nothing. Here’s how it works: A willing charity takes on the responsibility for paying your future premiums. In return, you get a sizeable tax receipt from the charity for the fair market value of your policy, as determined by a professional actuary. That receipt can then be used to claim federal and provincial tax credits. When you die, the charity collects your payout. “It’s a win-win for all,” says Mebs Dhalla, a financial adviser with HollisWealth, adding the strategy is becoming more mainstream.

Screen shot 2015-05-27 at 11.44.02 AM

 

Comments are closed.