Life Insurance Appraisals
No longer need your policy? Consider donating it to charity — but first find the right person to value it correctly
Many older clients have little use for their life insurance policies, yet they never consider donating them to charity. In fact, more than 75 percent of all life insurance policies no longer meet their owners' original needs, and policy owners let them lapse or cash them in prior to death. Maybe it's time to get creative and think outside the box. Sort of like someone who designs a new and different use for an old auto engine: Its mission may be obsolete, but its efficiency is without fault. Indeed, that old auto engine (aka the life insurance policy) can be viable as a tangible gift and have enormous impact on a donor's current income and his estate. Older clients who donate life insurance policies to charity can reap great rewards through large tax deductions and create extra cash flow that can be put towards retirement needs. Thus, monetizing this asset — typically seen as having little or no current value — actually creates many options, like supporting a favorite charity, adding directly to retirement funding, buying membership in a senior community or some combination of all three. To continue reading, click here.
