Life Insurance in Rancho Cucamonga CA can be used to make a donation to a charity by naming that organization as the beneficiary. Both term and whole life policies can name an organization for a charitable contribution. The policyholder also can have a rider added to a policy designating an amount to be provided to charity while the rest is paid to another beneficiary, typically a close relative.
Donating through a policy for Life Insurance in Rancho Cucamonga CA allows many people to support a favorite charity in a way they otherwise could not. Budget constraints might prevent them from sending a large amount of money to this organization throughout a lifetime, but the insurance policy solves that problem.
Check With the Organization
Before starting to set up this policy with an agency such as Barranca Insurance Services Inc., the person will want to check with the charitable organization about any specific tips or preferences they may provide. Some organizations provide details on their websites about how to do this. Smaller groups that are more locally based may not have any formal or informal process for accepting life insurance donations, but they still welcome the gift.
Discuss the Arrangement With the Closest Relatives
It’s a good idea for people to discuss this arrangement with their spouse or adult children who might be upset when learning that a substantial amount of life insurance has been directed to a charitable organization instead of for their inheritance. These individuals may not have a callous or selfish attitude about inheritance, but learning about this kind of arrangement after a close relative’s passing can leave them feeling blindsided and wondering if they did something wrong.
They might even bring the case in front of a judge if they feel strongly enough about this. That action can leave the charity having to deal with litigation. The person who purchased the life insurance policy certainly did not expect this outcome. Instead of keeping the matter a secret, sitting down with the family and letting everyone know that the person plans to provide a large donation to a favorite charity through life insurance gets everyone on the same page. You can also connect them on Facebook.
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