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An Update from Insuring A Better World Fund’s President

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This blog is going to focus on four events that although independent each significantly impact my current thinking. I hope that the events when viewed together may provide a roadmap for financial service industry professionals, nonprofit charitable organizations, Finseca, CGP and individuals to think about their own situations and how we can work together to ensure a better world for us all.

In a July 3 Finseca email Mark Cadin, the president of Finseca, the nation’s preeminent organization of life insurance agents and financial professionals, sent out a video link to his discussion with Phil Ferrari of EY. The focus of the video and the text that accompanies it was the proven need to plan HOLISTICALLY for financial success in order to maximize positive outcomes for clients. This EY study first published in 2021 confirms that life insurance and annuities provide diversification of assets that outperform other investment portfolios and is a shot in the arm for the life insurance industry as they continue to serve the best interest of their clients.

EY is one of the nation’s largest and premiere accounting firms. EY is not part of the life insurance industry and is an unbiased auditor of investments portfolios. The data is the facts. The facts unequivocally demonstrate the need for investment professionals to diversify the portfolios of their clientele to include insurance and annuities. The EY 2024 follow up study confirms this need for clients to include life insurance and annuities to maximize positive outcomes in their investment and retirement portfolio. I encourage all financial planners to make sure they have this study and share it with as many clients and individuals as possible. Finseca‘s goal is financial security for all, and that can only be achieved by educating people on the best way to achieve financial security. Hats off to EY for their investigative research and publishing their findings.  Kudos to Finseca for promoting this seminal paper and encouraging its thousands of members to engage their clients in the necessary planning.

That being said, there was in my mind a significant HOLE in the conversation about HOLISTIC planning. I believe one can NOT holistic plan absent a full-throated review of the individual’s and their family’s philanthropic ideals. To do so is missing out on one of the most important decisions an individual or family makes. Not having the philanthropic discussion also hurts the financial services professional and the industry. The Bank of America study, which is done annually, concludes that only one in five individuals are willing to discuss their financial plans, their wealth, or their estate plan with the next generation. Contrast that with the four in five individuals (80%) that are willing to discuss with the next generation their philanthropic ideals and their life story. This opportunity to engage the next generation and bring the family together allows the financial professional increased sales opportunities and clients increased satisfaction with their financial plan. It is a known fact that philanthropy and the positive impact it makes on the community reverberates not just to the recipient of this generosity but more importantly this generosity also bounces back to the philanthropist. That awesome feeling an individual gets from doing good works is it an endorphin rush that has been documented in study after study. Further it is a legacy that survives the individual and engages the family in a common goal.

Everyone leaves a legacy. Philanthropy is one significant part of an individual’s legacy that Finseca’s membership should all be actively engaged in helping their clients fulfill. Life insurance is a $21+ Trillion asset class that is often overlooked and grossly underutilized for charitable giving. It is time for Finseca to step up and ask more of their membership. I offer my assistance.

That segways seamlessly into the next event I wish to focus on, the national charitable gift planning conference.  I attended this conference in Orlando at the end of October. This was my eighth national conference and our charity, Insuring A Better World Fund, has exhibited at 5 or 6 of these conferences.  CGP is the national organization of charitable planned giving professionals, a remarkable group of highly educated and passionate individuals. I always leave these conferences excited about the opportunities for all to work together to benefit so many in fields ranging from education, religion, poverty, hunger, health and more.

One breakout session led by Dr. Russell James who uses medical science to gather data to measure the impact of philanthropic marketing, as well as a number of other important issues. I encourage all those reading this to visit Dr. Russell James’, of Texas Tech University, YouTube videos as this will greatly enhance your knowledge and refocus your marketing efforts to better serve charitable donors and financial planning clients. The gathering in Orlando incidentally included the best chicken meal of any of the nearly 100 large scale conferences that I’ve attended to date.

The annual conferences are a great way for people to work and share their thoughts and ideas in the planned giving space of charitable organizations. I am always struck by the positive impact that individuals can make and feel privileged to be able to associate with this group, all trying to better the world through the myriad of charitable organizations they work with. Breakout sessions on marketing and gift planning techniques are a staple of this conference. The opportunity to meet with vendors and other like-minded organizations provides inspiration to those that attend.

However, I also know that this conference continuously falls short in providing the necessary tools to maximize the impact of the charitable organizations that attend+. It falls short because for over a decade there has been no breakout session or discussion of the use of life insurance in philanthropy. Further the vendors that attend the conference who specialize in marketing and donor engagement, all are lacking in outreach regarding gifts of life insurance.

The national conference decision-makers, consultants and charitable organizations site numerous, albeit lame, reasons for this purposeful oversight. At this conference, I heard from nonprofit organizations about the low response rate that charities receive when engaging in an outreach or marketing campaign that targets the use of life insurance. That’s one excuse. I also heard that charities lack the expertise and administrative capabilities to deal with gifts of life insurance. That’s a second excuse. I also heard that charities don’t wish to have an association with a particular financial planner so as not to offend all other financial planners that may also wish to engage with the charity, that’s a third excuse. None of these excuses are significant enough to stop a charity from meeting their potential donors where they are and maximizing the gift opportunities for the constituency their charitable mission is to serve. Each of these excuses is easy to work around and that is why a breakout session is so important for the national conference to pursue so that charitable organizations are given the tools to meet their donors where they are and access the 21+ trillion-dollar life insurance asset class for philanthropic gifts. Nearly 9 in 10 life insurance policies lapse without paying a death benefit. Last year alone nearly $200 billion in the senior market alone were potential gifts to charity. In short, there is no reason that I have found in my 40 years in the financial planning space and nonprofit space for these two massive industries not to collaborate and achieve outcomes that are beneficial to both, and most importantly, serve the clients and donors that it is incumbent upon us to work on behalf of.

Here I will detour slightly from the natural order and rhythm much like a Grateful Dead song and return for a strong finish.

On November 5, as I’m sure all are aware, there was a presidential election. No matter what your politics, the election is over. Decisions have been made and we are all citizens of the same country. It is in our best interest to find ways to work collaboratively to find solutions to the many problems facing individuals and the country. We are not all in the same position and it is that uniqueness of personality and circumstance that makes solutions difficult to find and also makes uniformity impossible. This does not mean no decisions should be made and in fact no decision is a decision.

One party is now in control of the Presidency, the Senate and the House of Representatives. This is not an unusual occurrence. I am hopeful that this does not portend coming years of one party running roughshod over the other and legislating with the intent to do harm as opposed to raising all boats in an effort to do good by all. I am optimistic that this can be achieved. There are many areas where people of both parties agree on the desired outcome, although they may disagree on the proper to achieve that outcome. Most of the news media and social media are focused on the potential pitfalls and conflicts that are certain to arise. I choose to remain optimistic. I look around and see a world full of new potential and exciting opportunities. The advent of AI no doubt has challenges, and I am not one who believes it will provide a solution to all our evils and challenges. However, AI does hold out promise in almost every arena to make our lives easier, more efficient and produce better outcomes. That is my hope for the new President and his second term as well as the Congress. There is tax policy, immigration, education, and a host of foreign affairs issues to tackle. Let us all work together where possible and accomplish positive outcomes for the country and most importantly much like the Hippocratic oath of a physician, let’s treat each other with respect and do no harm.

With all these daunting issues in front of us, there is legitimate cause for concern. In a matter of a few short years, those aged 65 and older will for the first time in this nation’s history outnumber those that are 21 and younger. On November 2, my daughter, Molly, and her husband Ari welcomed our first grandchild Shaya into this world. There is nothing like holding a newborn to fill your heart with love, hope and optimism. I cannot say what the world will look like as Shaya grows older. I can only hope that the world of tomorrow is better than the world of today. As I walked her around in the middle of the night looking into her beautiful blue eyes I saw a world of possibilities, hopes and dreams.

Shaya

It is exactly how I felt some 30 years ago when our daughter Molly was born. I am filled with renewed commitment to do all I can to help her fulfill her destiny as she chooses. My cofounder, Robert, and I founded the Insuring A Better World Fund about a decade ago. Each of us had achieved significant success in the insurance industry and wanted to cement our legacy not just with the clients that we were fortunate enough to serve, but also to make a greater impact on the industry and society. Insuring A Better World Fund’s mission is to increase gifts of life insurance to charitable organizations and to strengthen the relationship between the insurance industry professionals and nonprofit organizations. In short, it is to let the charitable organizations utilize financial planners to meet donor/clients where they are and use life insurance as a tool to help fulfill philanthropic ideals. Our mission is to ensure a better world for us all, which now includes Shaya. Happy Thanksgiving and I hope everyone has a wonderful time with friends and family.

Donating to Charity: A Heartfelt Investment in Well-Being

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Mr. S was the first generation in his family to be born in the United States. His parents came to this country with only the clothes on their back. Both parents worked and Mr. S and his siblings spent their days at the local community center when not in school.

Upon graduation from college, Mr. S set upon a career in a manufacturing company where he rose to be its chief executive. With fond memories of the community center, that nurtured him through his childhood, Mr. S was always an annual contributor to the center’s operating fund. Upon retirement, the company owned a life insurance policy on the life of Mr. S that the company no longer needed.  The company offered to transfer ownership of the policy to Mr. S, but he did not wish to continue paying the premiums. The community center had grown from a local neighborhood gathering place for children and young adults to a full-service operation that included daycare for the very young and classes and physical therapy for the elderly. The neighborhood had changed greatly and now the myriad of nationalities, races and ethnicities that regularly utilized the facilities had grown significantly.

Mr. S wished to support the expansion of the services offered by the community center and utilized his no longer needed life insurance policy to make a significant donation to help the community center in its effort to fully serve its diverse community.

Mr. S’s donation of this unwanted life insurance policy was achieved through a donation to Insuring A Better World Fund who paid all future premiums and other expenses necessary to maintain the policy at no cost to Mr. S or the community center.

“It’s better to give than to receive” is not just an old adage, it can be a prescription for a healthier life.

In a world where personal health and wellness are top priorities, one often overlooked avenue to better health is through charitable giving. While the act of donating primarily benefits those in need, numerous studies have shown that it can also have significant positive impacts on the donor’s physical and mental well-being. Beyond the warm feeling of altruism, let’s explore some of the tangible health benefits associated with donating to charity.

Reducing Stress and Promoting Emotional Well-being

“When we do things for other people, it makes us feel much more engaged and joyful.  That’s good for our health and happiness”. Susan Albers, PsyD published in Cleveland Clinic’s Health Essentials website, December 7, 2022.

Donating to charity has been linked to reduced stress levels and an overall sense of well-being. Acts of generosity trigger the release of endorphins, often referred to as the “feel-good” hormones, which can promote a sense of happiness and contentment. This biochemical reaction not only improves mood but also helps in lowering stress and anxiety levels. Moreover, the emotional satisfaction derived from helping others can foster a positive outlook on life and improve mental resilience.

“As you help someone or give a gift, your body secretes ‘feel good’ chemicals such as 

  • Serotonin (which regulates your mood)
  • Dopamine (which gives you a sense of pleasure)
  • Oxytocin (which creates a sense of connection with others) 

Giving can stimulate your brain’s mesolimbic pathway, or reward center, while releasing endorphins.  That can lead to a ‘helper’s high’ that boosts self-esteem, elevates happiness and combats feelings of depression”. id.

Boosting Longevity and Physical Health

Believe it or not, giving to charity may actually contribute to a longer, healthier life. Researchers found that individuals who engage in regular charitable activities tend to have lower blood pressure, reduced risk of cardiovascular diseases, and even a strengthened immune system. These health benefits are thought to stem from the positive emotions associated with altruistic behavior, which can lead to a healthier physiological state over time.

“Generosity truly is good for your heart. Researchers found that giving to others can lower your blood pressure and protect your ticker.” id.

Enhancing Social Connections

One of the lesser-known benefits of charitable giving is its role in building social connections and strengthening community bonds. Whether through volunteering or financial contributions, involvement in charitable activities often brings people together with shared values and goals. This sense of belonging and social integration has profound effects on mental health, including reduced feelings of loneliness and depression. Strong social connections are also associated with better overall health outcomes and increased longevity.

Cultivating a Sense of Purpose and Meaning

Giving to charity provides a sense of purpose and meaning in life, which are crucial elements of psychological well-being. Knowing that one’s actions positively impact the lives of others fosters a deeper sense of fulfillment and satisfaction. This sense of purpose is particularly beneficial during challenging times, providing a source of motivation and resilience.

Tax Benefits, Financial Planning and Peace of Mind 

While not directly related to physical health, the financial incentives of charitable giving, such as tax deductions, indirectly contribute to overall well-being. By strategically planning donations, individuals optimize their financial resources while supporting causes they care about. This leads to a greater sense of financial security and peace of mind.

Donations of Life Insurance Have an Enormous Impact on both the Giver and Receiver

Seniors (age 65 or older) may own an asset that would make a huge impact on the charity of their choice.  If you are a senior and own a life insurance policy that you no longer need or can afford, or if you simply wish to make an enormous impact on a charitable cause that is near and dear to your heart, consider donating it to your favorite charity.  Insuring A Better World Fund’s mission is to increase donations of life insurance to charity.  Life insurance is a 21+ trillion-dollar asset class that is often overlooked by charitable gift planners and potential donors.  Insuring A Better World Fund accepts donations of life insurance and then pays all of the premium and other costs needed to maintain the life insurance policy in-force. Insuring A Better World Fund is a 501(c)(3) nonprofit. Donors may be entitled to a significant charitable tax deduction based upon the value of the policy at the time of donation.  When donating a policy to Insuring A Better World Fund, the policy owner/donor selects the charity that will benefit from the donation.  There is no cost to the donor or the charity.  Donors Give…Charities Receive….Insuring A Better World Fund pays to keep the policy in force.

In conclusion, donating to charity is not only a compassionate gesture but also a wise investment in one’s own health and happiness. The ripple effects of generosity extend far beyond the immediate act of giving, benefiting both individuals and communities alike. Whether through volunteering time, donating money, or contributing skills, the health benefits of charitable giving underscore its value as a powerful tool for personal well-being. By nurturing a spirit of generosity, we not only enrich the lives of others but also cultivate a healthier and more fulfilling life for ourselves. Together we can ensure a better world for us all. 

We Are the World

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No matter what your politics, manmade or just nature taking its course, there is no question climate change is upon us. The annual Bank of America (formerly US Trust) study showed that although climate change was a top three issue for philanthropic consideration, climate change ranked barely in the top 20 of philanthropic donations.

The first Earth Day was celebrated in 1970 when a United States Senator from Wisconsin organized a national demonstration to raise awareness about environmental issues. Earth Day now includes a wide range of events involving an estimated one billion people in more than 193 countries. The official Earth Day theme for 2024 is “Planet vs. Plastics”. As Earth Day approaches this year, April 22nd, it’s a time for reflection, action, and considering how we can make a positive impact on our planet. While activities such as planting trees; reducing waste; limiting single use plastic; promoting renewable energy; healthy buildings; and supporting other eco-friendly initiatives are often highlighted, there’s another way to contribute to the well-being of the Earth that you might not have considered: donating a life insurance policy to charity.

Life insurance is typically viewed as a means to provide financial security for loved ones in the event of our passing. However, it can also be a powerful tool for supporting causes that are for the greater good of all of us, including environmental conservation and sustainability efforts.

Why Donate a Life Insurance Policy?

There are several reasons why donating a life insurance policy can be an attractive option for those looking to support environmental causes:

      1. Leveraging Existing Assets: Many people already have life insurance policies in place that they may no longer need or can afford. By donating a policy, you can leverage an existing asset to make a significant charitable contribution which can positively impact your current financial situation.
      2. Tax Benefits: In many cases, donating a life insurance policy can provide tax benefits. Depending on the specifics of the policy and your tax situation, you may be eligible for a charitable deduction.*
      3. Legacy and Impact: By donating a life insurance policy to an environmental charity, you can leave a lasting legacy that reflects your values and commitment to protecting the planet for future generations. Your contribution can support initiatives such as reforestation, wildlife conservation, clean energy research, and more.
      4. Supporting Nonprofits: Charitable organizations rely on donations to fund their operations and carry out their missions. By donating a life insurance policy, you can provide crucial support to environmental nonprofits, enabling them to continue their vital work in protecting and preserving the Earth’s ecosystems.

 

How to Donate a Life Insurance Policy

Donating a life insurance policy to charity is a straightforward process when going through Insuring A Better World Fund which is a 501(c)(3) nonprofit whose mission is to facilitate donations of life insurance for the benefit of other charities. From start to finish, Insuring A Better World Fund does it all so that charities and donors don’t have to. Insuring A Better World Fund pays all premiums and there is no cost to the charity you select to receive the net death benefits. Over 80% of adults 66+ years old don’t know there is an alternative to lapsing their unneeded life insurance. That is why Insuring A Better World Fund was founded by insurance professionals with many decades of experience. We have reimagined charitable gifts of life insurance. Now, your unneeded life insurance policy can become your no cost legacy. Consider donating a life insurance policy to charity as a powerful way to support environmental causes and ensure a brighter, greener future for all.

A Deloitte 2023 survey of Gen Zs and Millennials found that roughly 6 in 10 from both groups say they have felt anxious about the environment. Roughly the same percentage cite extreme weather events and wildfires as a stress driver. The majority are taking action, with 69 percent of Gen Zs and 73 percent of millennials actively trying to minimize their impact on the environment—not driving a car, avoiding fast fashion, making their homes more energy efficient, etc.

Everyone leaves this Earth and everyone leaves a Legacy. Let’s work together to leave a legacy of a sustainable Earth and ensure a better world for us all. Contact Insuring A Better World Fund at 312-819-0790 or ds@iabwf.org for more information. Happy Earth Day!

Teeing Up A Legacy

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The Masters Golf Tournament is held annually at the Augusta National Golf Club. The Masters is more than just a golf tournament; it is rich in history and legacy. Jack Nicklaus has won this prestigious championship a record six times. Tiger Woods began his legacy at the Masters in 1997 at only 21 years of age with a record-breaking score of 18 under par and has five titles to his credit. Arnold Palmer, nicknamed “the King” won the Masters four times. That is only part of their legacy. 

Nicklaus’s annual golf tournament, “The Memorial” honors the memory of individuals who have distinguished themselves in the game of golf, showcases the world’s best golfers, and has raised millions of dollars to benefit Columbus, Ohio charities in alliance with the Nicklaus Children’s Healthcare Foundation. Woods became not just a golfer, but a cultural icon, captivating audiences worldwide and popularizing golf in ways previously unimaginable, adding diversity and opportunity to the game. Palmer is credited with popularizing the game of golf and his famous Arnie’s Army which attracted record numbers of fans to tournaments worldwide. His foundation also has raised millions for children’s health charities. The influence Palmer, Nicklaus and Woods have had on the world extends far beyond their accomplishments in sports. 

You don’t have to be a Masters Champion to leave a legacy. Insuring A Better World Fund can help you leave a legacy with your life insurance policy. Furthermore, the act of donating a life insurance policy embodies the spirit of legacy in its purest form. It transcends material wealth and temporal success, leaving behind a legacy of compassion, generosity, and altruism.

Donating a life insurance policy to charity is a strategic move that enables individuals to leave behind a meaningful legacy providing support to causes they hold dear. When you donate a life insurance policy to Insuring A Better World Fund you no longer pay premiums and there is no cost to the charity you select to receive the net death benefits. 

Just as the Masters has left an indelible mark on the world of golf, so too can you leave your own lasting imprint on our world. Everyone leaves a legacy. What is yours? In the end, it is not the trophies or accolades that define a legacy but rather the lives touched, and the hearts uplifted along the way. Donating a life insurance policy to Insuring A Better World Fund for the benefit of your favorite charity can help ensure a better world for us all. If not now, when?

PLAY BALL

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Did you know that $250 million of senior owned life insurance lapses each year? So, during every 9-inning major league baseball game with an average time of 2 ½ hours, $71,350.00 of life insurance will lapse without paying a death benefit to anyone.  Well it’s time for your charity and its donor pool to PLAY BALL in the $21 trillion life insurance asset class.  You can hit a grand slam for your charity and your potential donors by repurposing unwanted life insurance for the benefit of charities that support causes that cure disease, educate the underserved, help veterans in need of medical and financial assistance, support religious institutions, protect the environment and so much more.  

What can you do to benefit your charitable organization and help your donors achieve their philanthropic ideals?  First, you head out to the pitcher’s mound to talk with your donor and find out if they have a life insurance policy they no longer need, want or can afford?  

Next, you make the PITCH: “Mr. or Ms. Donor did you know that you can use that life insurance policy to benefit your favorite charitable cause, and potentially get a significant income tax deduction?”

There are many ways for a donor to support their favorite charity.  One of the best ways is for the donor to donate their life insurance policy to Insuring A Better World Fund which is a 501(c)(3) non-profit that accepts charitable donations of life insurance for the benefit of other charities.  The vast majority of charities are either unaware of the potential benefits of donations of life insurance, or don’t have the staff or expertise to either solicit those donations or administer the policies once they are donated.  That’s where Insuring A Better World Fund comes out of the bullpen and takes the mound in RELIEF.

Insuring A Better World Fund’s founders have well over 75 years of combined experience in the life insurance industry. It occurred to them that lapsing life insurance policies are valuable assets that shouldn’t go to waste, but instead could be used to support a huge number of worthy charitable causes.  Insuring A Better World Fund accepts donations of life insurance policies from seniors who are the donors of the policies.  Those donors select a charity of their choice that they want to receive the death benefits.  Insuring A Better World Fund pools the donated policy with other donated policies and pays all of the premium and other costs to keep the policies in force until they mature.  

Once there is a sufficient amount of policies that have matured, Insuring A Better World Fund distributes the net death benefit proceeds to all the charities in the pool (called a vintage) on a pro-rata basis.  This means that each individual charity that had a donor select it as the charity of their choice no longer has to wait for their own donor to pass away.  Instead, the charity will receive its pro rata share of distributions from the time the first distribution is made until the last distribution is made from the vintage.

Life insurance can also be donated simply by naming the charity as the beneficiary of the policy.  The problem with a beneficiary designation is there is no way to ensure that the donor or the charity will make all the premium payments needed to keep the policy in force through maturity.  If the policy lapses, the charity gets nothing. If your charity already has a portfolio of life insurance policies, we can evaluate them to see if they are eligible for donation to Insuring A Better World Fund, and if so, Insuring A Better World Fund will take over the obligation to pay the premium and administer the policies.  

In honor of the start of the 2024 baseball season, Insuring A Better World Fund is not going to keep its bat on its shoulder in hopes for a walk.  Instead, we are going to swing for the fences by making a charitable donation of our own to the MLB-MLBPA Youth Development Foundation.

MLB-MLBPA Youth Development Foundation (YDF) is a joint initiative by Major League Baseball and the Players Association to support efforts that focus on improving the caliber, effectiveness and availability of amateur baseball and softball programs across the United States and internationally. From local-based programs to the Hank Aaron Invitational and HBCU Swingman Classic, the foundation helps make youth baseball and softball more accessible – creating economic opportunities, strengthening communities, and building character – on and off the field.  Website: www.baseballydf.com

If you want to learn more about donations of life insurance or have policies that you want Insuring A Better World Fund to evaluate, please contact us at (312) 819-0790; or ds@iabwf.org.

A Guide for Charities with Life Insurance Donations

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Insuring A Better World Fund strives to empower charities with valuable opportunities to enhance their impact. Today, we address a unique and often overlooked avenue for charitable giving—life insurance policies. Inspired by the insightful article from our President David Simon published on ThinkAdvisor titled “10 Top Ways to Use Life Insurance in Charitable Giving”, we explore how charities can effectively manage life insurance donations to maximize their benefits.

Life insurance policies can serve as a powerful tool for charitable giving, allowing organizations to receive substantial contributions that may otherwise go untapped. The ThinkAdvisor article outlines various strategies, from designating the charity as a beneficiary to gifting a policy outright. However, once these policies are accepted, it’s essential for charities to have a clear plan in place to maximize these assets for their mission.

Key Steps for Charities:

      1. Conduct a Policy Review: Begin by thoroughly reviewing the terms and conditions of each life insurance policy received. Understanding the specifics, such as the face value, premiums, and any potential riders, is crucial for effective planning. Insuring A Better World Fund’s leadership are experts in this step. Reach out to us with any questions. 
      2. Assess Financial Implications: Evaluate the financial implications of maintaining the policies. Charities should consider factors such as ongoing premium payments, potential tax implications, and the overall impact on their financial stability. Don’t just file the annual statements. Illustrations projecting policy performance are a must. These projections are readily obtained from the insurance company. Again don’t hesitate to reach out to Insuring A Better World Fund for help. Let us use our 100+ years of combined experience to assist you. 
      3. Engage with Donors or Donor Families: Establish open communication with the donors or their families to express gratitude, understand their intent, and gather any additional information, such as general health changes of the insured that may be pertinent to the management of the policies.
      4. Explore Policy Options: Depending on the charity’s goals and financial circumstances, explore various options for utilizing the life insurance policies. This could include holding onto the policies, surrendering them for cash value, or donating them to Insuring A Better World Fund where we take care of all the administration and premium payments. 
      5. Consult with Financial and Legal Professionals: Seek advice from financial and legal professionals with expertise in charitable giving and insurance matters. These experts can provide valuable insights and help charities make informed decisions aligned with their mission and financial objectives. Insuring A Better World Fund’s leadership years of experience and expertise in the utilization of life insurance for charitable giving. Call us at 312.819.0790 or email ds@iabwf.org with questions on policies you may have. 
      6. Communicate Transparently: Maintain transparency with donors and beneficiaries, about the charity’s decision-making process and the intended use of life insurance proceeds.
      7. Update Policies as Necessary: If the charity decides to maintain the policies, ensure they are up-to-date. This may involve updating beneficiary designations or adjusting coverage to align with the donors premium tolerance.
      8. Integrate Policies into Fundraising Efforts: Consider incorporating the life insurance policies into fundraising campaigns or initiatives, showcasing how these unique assets contribute to the charity’s long-term sustainability and impact.
      9. Educate Staff and Volunteers: Provide training to staff and volunteers on the options of donating life insurance ensuring everyone involved understands the potential benefits associated with these assets. Again Insuring A Better World Fund is here to help. 


Life insurance donations can be a transformative resource for charities, offering a sustainable stream of support for their missions. Life insurance is a $21+ TRILLION asset class. Nearly 90% of life insurance policies lapse without paying a death benefit. Last year alone over 265,000 seniors lapsed approximately $200 BILLION of life insurance. How much of that waste did you transform into gifts for your charity? By following these key steps and leveraging the insights from the ThinkAdvisor article, charities can navigate the complexities of managing life insurance policies effectively and ultimately enhance their capacity to make a lasting impact on the communities they serve. If your charity doesn’t have a life insurance expert…GET ONE. Insuring A Better World Fund may be your life insurance expert. There are valuable life insurance policies lapsing every day. If not now, when?

The National Charitable Gift Planners 2023 Conference Recap

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Insuring A Better World Fund thoroughly enjoyed exhibiting and participating at the national CGP conference hosted in our hometown of Chicago. I am glad to see our presence left a lasting impression on attendees and showcased our commitment to bringing life insurance as a form of philanthropy.

The National Charitable Gift Planners 2023 Conference brought together thought leaders, professionals, and organizations dedicated to advancing charitable gift planning. The conference served as a platform for networking, knowledge-sharing, and fostering collaborations in the realm of philanthropy. Unfortunately for the last decade plus, there again were no breakout sessions discussing noncash gifts of life insurance. 

Our booth at the conference was a hub of activity, attracting attendees with an inviting display and engaging materials. Visitors had the opportunity to learn about our mission, initiatives, and the impact we are making in creating a better world through innovative philanthropic strategies.

To make our presence memorable, Insuring A Better World Fund distributed signed cookbooks, “Listen to Your Vegetables” complemented by artisanal parmesan and 18 year old balsamic vinegar. This thoughtful and unique giveaway not only showcased our commitment to making a positive impact but also left a delightful taste in the mouths of conference attendees.

Our team engaged in meaningful conversations with conference participants, discussing the importance of life insurance in philanthropy and the many opportunities for this 21+ TRILLION dollar asset class to make a difference in charitable giving. The interactive nature of our booth facilitated connections with like-minded individuals, fostering potential partnerships and collaborations.

Let’s Stay Connected: We encourage you to explore our website for additional details and ways to get your charity involved. Feel free to reach out if you have any questions or would like more information about how to get life insurance included in your noncash donation program. Last year over 150 BILLION dollars of life insurance policies were lapsed by over 265,000 seniors. WE MUST WORK TO CHANGE THIS WASTE INTO PHILANTHROPY!

Thank you for your continued support and commitment to making the world a better place for all of us.

Barbie’s Legacy is Cemented; But is Your Client’s?

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Cue the scene of all the Barbies having the best day ever in Barbie Land when [record scratch] Barbie brings up “do you guys ever think about death?”.  This shocks all the other Barbies.  It may be uncomfortable, but this conversation needs to happen, and it is your obligation to make sure you understand your client’s legacy aspirations. 

Over 60 years after Barbie was born by creator Ruth Handler, Barbie’s legacy is cemented not just in her dolls and movies, but now a permanent structure in the soon to be open theme park in Glendale, AZ. Everyone leaves a legacy, the ethics and values you want remembered after your passing. This is your opportunity to help cement your client’s legacy and make a lasting impact on a cause your client is passionate about. 

Clients often do not know the potential of their unneeded life insurance policy to fulfill their philanthropic ideals. It is vital for us in the financial service profession to inform policy holders of their options. These options include a life settlement, or a new, no-cost option to donate unneeded life insurance policies to charities of the donors choosing through Insuring A Better World Fund. Every policy owner is unique and will make decisions based on their own situation. We have to equip them with the knowledge to make the best decision. 

Starting the conversation with your client about their life insurance policy options can be difficult. Death is not an easy topic. That is why you shouldn’t lead with death. Studies like that of Dr. Russell James of Texas Tech University prove you can discuss life insurance by leading with the permanence of your client’s legacy, their ethics and values and examples of people in similar circumstances who have taken advantage of the various life insurance strategies. 

The way we approach conversations about life insurance is very important. It’s not just about conveying information; it’s about evoking emotions, sparking inspiration, and fostering a deep sense of care for clients and potential donors. Utilizing positive and action-oriented language with clients can empower them to make a difference. 

Over 80% of adults 66+ years old don’t know there is an alternative to lapsing their unneeded life insurance. Each year, more than 250,000 seniors lapse over $100 billion of life insurance when the owners stop paying premiums. Together, we can repurpose this waste to ensure a better world for us all. 

It’s their life insurance. It’s their legacy. They need your help. 

Creating a Legacy of Love: A Philanthropic Journey with Life Insurance

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Introduction: “To sell or not to sell that is the question.” This famous line from Shakespeare’s Hamlet is a timeless contemplation of life’s uncertainties. Life is a tapestry of choices and opportunities, and for Mr. O, a successful small business owner, it was a question of what to do with his life insurance policies. As the years passed and circumstances evolved, he found himself at a crossroads, faced with an array of options that would shape his legacy and impact future generations. Join us on a captivating journey of philanthropy and inspiration as we delve into the heartwarming story of Mr. O’s decision.

Chapter 1: Building a Life of Generosity From a young age, Mr. O’s life was marked by acts of generosity and compassion. As a regular contributor to his church and a leader within his community, he had always sought ways to make a positive difference. Little did he know that his life insurance policies, purchased years ago, would become a key instrument in fulfilling his philanthropic dreams.

Chapter 2: A Transformative Moment – The Pandemic In 2020, a global pandemic swept across the world, changing lives in unforeseen ways. For Mr. O, this period became a turning point in his life. As he decided to sell his business, he faced a crucial decision regarding his life insurance policies, which were originally meant for business planning, potential estate taxes, and family security.

Chapter 3: The Options Unfolded – With the help of trusted advisors and careful consideration, Mr. O explored his options. He could have allowed the policies to lapse, saving the annual premium cost for himself but also leaving behind a valuable asset that could benefit others. Alternatively, he could have continued paying premiums, redirecting the proceeds to his family or a chosen charity, but this option didn’t resonate with him.

Chapter 4: A Glimmer of Hope – Then came the discovery of the life settlement market. Mr. O learned that he could sell his policies and reap the proceeds for himself. This route offered a better alternative than letting the policies lapse, and he decided to take advantage of this opportunity for one of his policies.

Chapter 5: Creating a Lasting Legacy – Mr. O’s story doesn’t end there. In his search for a meaningful way to give back, he stumbled upon Insuring A Better World Fund, a nonprofit that accepts life insurance policies as donations. By donating one of his policies to this worthy cause, he could support the ultimate charity of his choice and make a lasting impact on his community. This organization allows donors to choose the ultimate charity to receive the net death benefits, and they cover all premium and other costs associated with the donated policy. This seemed like a perfect solution for Mr. O’s philanthropic ideals without the burden of premium payments.

Chapter 6: The Fruits of Generosity – The results of Mr. O’s decisions were beyond his expectations. By selling one policy, he received a significant sum of money that he could use to secure his future. And by donating another policy to Insuring A Better World Fund, he unlocked the power of philanthropy, receiving a charitable income tax deduction and benefiting his church.

Conclusion: A Legacy of Love – Mr. O’s journey of philanthropy is a testament to the power of giving back. Through thoughtful decision-making and a heart full of compassion, he secured a bright future for himself and left behind a legacy of love and generosity. The lesson we can learn from his story is that life insurance policies can serve as powerful tools for both financial security and philanthropy. 

“To sell or not to sell? That is the question? No, the question is “What is the best use of your life insurance policy for you?”. If you want to use your life insurance policy to fulfill your philanthropic ideals, then Insuring A Better World Fund may be your answer. Together, we can ensure a better world for us all.

The Perfect Blend: A Wise Exit Strategy for a Life Insurance Policy

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Introduction: Life is a journey filled with unexpected twists and turns. For Mr. A, a successful financial planner, life had taken him on a path he never anticipated. He had purchased a life insurance policy two decades ago, intending to safeguard his loved ones in case of an untimely event. Little did he know that his noble intentions would lead him to a moment of profound generosity and gratitude, shaping the future in a way he never imagined.

The Policy Predicament: As time passed, the insurance landscape changed drastically. The prolonged low-interest rate environment led to a sharp decline in crediting rates across all life insurance carriers. Unfortunately, Mr. A received an unwelcome surprise: a pending lapse notice from the life insurance company. To maintain his policy’s coverage, he was now required to pay three times the original premium at age 70. A daunting prospect, especially for someone who had recently retired and sought to conserve income.

The Common Path: When faced with such a situation, many individuals opt to let the policy lapse. It is the most common decision, and understandably so, as the burden of increased premiums can seem overwhelming. According to statistics, a staggering 88% of life insurance policies sold in the United States end up lapsing without ever paying a death benefit.

Insuring A Better World Fund:

Mr. A didn’t settle for the common path; he chose the extraordinary one. He discovered the Insuring A Better World Fund, a 501(c)(3) charity that offered a remarkable alternative. By donating his policy to the fund, Mr. A could stop the $16,000 a year premium payments without forsaking the $1 million life insurance policy death benefit.

The Perfect Blend: Mr. A opted for the perfect blend. By donating his policy to “Insuring A Better World Fund”, he secured several benefits:

    • No Cost: The donation to the charity comes at no cost to Mr. A or the chosen charity.
    • Charitable Tax Deduction: Mr. A received a charitable tax deduction for the policy’s valuation, which amounted to approximately $150,000.
    • Legacy Gift: His alma mater received prorated distributions from the Fund, turning the lapsing life insurance policy into a legacy-sized gift.
    • Continued Annual Giving: With the $16,000 savings on life insurance premiums, Mr. A now makes annual donations of $5,000 to his alma mater, generating additional charitable income tax deductions.

 

Conclusion: Mr. A’s decision to donate his life insurance policy proved to be the perfect blend of generosity and foresight. Not only did he fulfill his pledge to his alma mater while alive, but he also ensured that a charitable cause dear to him would benefit from his legacy. The lesson learned from Mr. A’s story is that with thoughtful planning, a blend of options can lead to a win-win situation for all parties involved. Consider exploring creative ways to make a positive impact while safeguarding your financial future—a perfect blend of gift and gratitude.