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Gifts of Life Insurance

There are three ways that a gift of life insurance can be made to the EFC:

  1. buying a new policy and then assigning ownership of the policy to the EFC;
  2. donating an existing policy with premiums still owing and,
  3. naming the EFC as the direct beneficiary of the life insurance.

The EFC is please to make available a direct link http://www.charitylifedirect.com/ for you to obtain an insurance quote online. In the left hand column select “apply now” and enter your personal information without any obligation to make an immediate purchase. Anyone age 18 to age 75 can apply. Please note that you can select a payment that will result in the policy being paid up in 3 to 5 years. Another important fact to note is that the EFC will issue a donation receipt to you for every premium payment you make. The tax credit resulting from this donation will reduce the cost of insurance by 39% to 50% depending on which jurisdiction in Canada you live in.

You will find that this site provides the opportunity for you to designate your gift of life insurance to various charities. Please select The Evangelical Fellowship of Canada to ensure that your gift comes to the EFC and, so that we can issue a tax receipt to you.

Note: If you prefer to submit the annual payments on a monthly basis to the EFC, we will accrue the payments and submit the annual payment at the appropriate time to the insurance company.

If you prefer to arrange a gift of life insurance with your own insurance agent, please note the following procedures and guidelines. You may also contact the EFC to receive specific information on gifting a policy.

You may choose to assign ownership of only a portion of a policy to the EFC and retain the rest for your family or other beneficiaries; in this case the percentage of premium payment qualifying for a charitable tax receipt, is equal to the percentage of ownership assigned to the EFC. The EFC has developed administrative procedures for the management of gifts of life insurance. Read Canada Revenue Agency’s material on donation of life insurance policies.

  1. Buying a new policy - It is advisable to make a minimum premium payment to create the new life insurance policy because the first premium payment does not qualify as a charitable donation. The policy must first be in force so that there is an asset, and then ownership assigned to the EFC, All premium payments then are considered to be a charitable donation and will provide a tax credit to the donor.
  2. Donating existing policy with premiums owing. In this case a charitable tax receipt will be issued for the cash value of the policy and, for each premium payment the donor makes.
  3. Naming the EFC as beneficiary. In this case the donor retains ownership of the policy thereby disqualifying the EFC from issuing a charitable tax receipt for the premium payments. However, the EFC in this case will issue a charitable tax receipt for the face value of the policy when it receives payment from the insurance company.
  4. Administrative procedures for life insurance will involve a representative from the EFC who will:
    1. Request a copy of the donor’s life insurance policy, confirming the EFC’s designation as owner and beneficiary;
    2. In the event of a policy with premiums owing, request annual, written notice of premium payment from the donor’s life insurance company;
    3. If the insurance is in danger of being terminated because of lapsed premium payments, the EFC will determine the viability of it making premium payments to maintain the policy or, cash in the policy.
    4. Following confirmation from the insurance company that the EFC has been irrevocably assigned ownership of a policy and has been named as the irrevocable beneficiary, the EFC will issue a charitable tax receipt for the appropriate value.

     

Legacy Giving Links:

Form to obtain Gift Annuity quote

Form for Donation of Securities

LG Contact information:
To know more about legacy giving, please contact Bill Winger, Vice President, Operations at legacygiving@theEFC.ca or (905) 479-5885 x 231 or toll free at 1-866-302-3362 x 231

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