Royal Victoria Regional Health Centre Foundation

Life Insurance

Making a gift of life insurance is a good option for your clients who wish to leverage a significant gift to RVH Foundation while enjoying the resulting tax benefit either today or tomorrow.

There are several ways your client may choose to make this type of gift through whole life, term or group insurance.

1) Gift of a new life insurance policy:

Your client may choose to arrange a new life insurance policy irrevocably naming RVH Foundation as the owner and beneficiary, receiving tax savings today. Your client will make the premium payments directly to the insurance company while RVH Foundation provides your client with an annual receipt for income tax purposes for premiums paid. Immediately upon death, the full benefit of the policy will be paid out to RVH Foundation.

Benefits:

  • Your client leverages a gift larger than may otherwise be possible to help future programs and services of importance to them for the community
  • Your client reduces taxes by claiming a tax credit for all premiums paid

2) Gift of a partially paid-up life insurance policy:

Your client may choose to irrevocably transfer the ownership and beneficiary designation of a current policy to RVH Foundation. Your client will receive an immediate tax receipt for the fair market value (FMV) of the policy, plus an annual receipt going forward for premium payments made to the insurance company to keep the policy in force. Upon the death of your client, the full benefit of the policy will be paid to RVH Foundation.

Benefits:

  • Your client leverages a gift larger than may otherwise be possible to help future programs and services of importance to them for the community
  • Your client receives an immediate tax receipt for the FMV of the policy to reduce current taxes owing
  • Your client reduces future taxes by claiming a tax credit for all premiums paid going forward

 3) Gift of a beneficiary designation on a current life insurance policy:

Your client may choose to name RVH Foundation as the beneficiary designation on any life insurance product in force. Upon the death of your client, a tax receipt for the full value of the insurance proceeds received by RVH Foundation will be provided to the client’s estate for filing on their final return. Should the tax relief exceed 100 per cent of your client’s income in the year of death, it may be carried back for one year to recover taxes paid in the year preceding.

Benefits:

  • Your client retains control of the beneficiary designation during their lifetime
  • Your client leverages a gift larger than may otherwise be possible to help future programs and services of importance to them for the community
  • Estate receives a tax receipt equivalent to the value received from the policy to offset taxes owing up to 100 per cent of net income in the year of death, plus one year carry back