Giving Life Insurance

Life insurance allows people with relatively small cash savings to make large cash gifts to charities at their death. They leave a legacy of generosity and support for the ministries and causes closest to their hearts.

Provident has the unique ability to act as the facilitator of your life insurance gift. Administrative duties are taken care of while several different charities of your choice can benefit from your gift through distribution by Provident. Your executor will not be burdened by additional duties related to this giving plan.

There are several ways to leave a life insurance policy to charity:

  • A donor may purchase a policy and immediately donate it to Provident and, as the owner of the policy, Provident will designate itself as the beneficiary of the policy and will distribute the benefits according to the donor's wishes; the donor will continue to pay the premiums and will receive charitable donation receipts for each premium paid.
  • Alternatively, a donor can give an existing policy to Provident, in which case the donor will be entitled to a charitable donation receipt for the cash value of the policy.
  • Life insurance can also be owned by the donor with Provident named as the beneficiary (for distribution purposes). In this case, the donor does not receive a tax credit for premium payments but he or she receives a charitable donation receipt for the death benefit paid to Provident.

If this interests you, work with your financial advisor to consider which option would be most preferable for you. Provident will be happy to work with your chosen advisor to ensure your plans are put into place and your wishes are carried out.

How it works:

  1. Decide on the mechanism for donating a life insurance policy as described above.
  2. Advise Provident of your decisions.
  3. Complete a Letter of Direction and send it to Provident in order to leave your recommendations on the distribution of these monies to charities of your choice once they are received by Provident.
  4. OR if you would like your gift to be used to establish a Provident Legacy Fund, complete the application form and send it to Provident. Be sure to include the contact information of your fund successors
  5. Advise your family and your financial advisor of your decision.