Life Insurance

Life insurance provides a simple way for you to give a significant gift to charity, with tax benefits that you can enjoy during your lifetime.

How it works:

  • You make Community Foundation of the South Okanagan the owner and irrevocable beneficiary of your life insurance policy – you can either give a paid-up policy or continue to pay premiums.
  • You receive a tax credit for the fair market value of your policy. If the policy is paid up, you may receive an immediate tax credit. If it is not, you can claim continuing tax credits on premium payments you make directly or through gifts to the community foundation.
  • Upon your death, we set up a special fund in your name, in the name of your family, or in honour of any person or organization you choose.
  • Our professional staff considers your charitable wishes and determines the community needs that would benefit the most through grants from your gift.
  • Our board issues grants in the name of your fund (if you prefer, your awards can be made anonymously).
  • We handle all the administrative details.
  • Your gift is placed into an endowment that is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift – and all future earnings from your gift – is a permanent source of community capital, helping to do good work forever.

Life Insurance Options

Gifts of Life Insurance can be structured in several ways and assessing the pros and cons can be quite complex.  For this reason it is important that you discuss the options with your financial advisor and ensure that you make the choice that best fits your financial situation.

There are two basic options:

One: naming the Community Foundation as a beneficiary and not the owner

Tax Benefit: the Estate receives the charitable tax receipt for the full value of the policy received by the Foundation. This receipt is used to offset estate taxes, thereby ensuring more of the Estate is available for surviving family member

Two: naming the Community Foundation as the owner and irrevocable beneficiary

Tax Benefit: you receive a tax receipt annually for the premium payments on the policy.