Life insurance is a capital asset, just like a car, house or piece of art. Yet every year, it is estimated that tens of thousands of seniors, our target market, will lapse their policy, leaving over $100 billion in benefits behind. With no change to human behavior, this waste can be transformed to better the world.
Life insurance is a capital asset, just like a car, house or piece of art. Yet every year, it is estimated that tens of thousands of seniors, our target market, will lapse their policy, leaving over $100 billion in benefits behind. With no change to human behavior, this waste can be transformed to better the world.
There is nearly $20 trillion of life insurance in force in the United States. 88% of policies will terminate without providing death benefits to policy owners or charity. Why?
The number one reason is cost. Policy owners and charities do not have the money to pay for the policy to maturity. What if that is no longer a barrier? With Insuring A Better World Fund, it’s not.
We save lapsing policies and drive their value to charity. By donating an unwanted life insurance policy, donors can make legacy-sized gifts to their favorite charity with a simple, no-cost process. Upon donation, we pay all premium and other costs for donated policies to relieve donors and their selected charities from the financial burden of maintaining the policy.
There is nearly $20 trillion of life insurance in force in the United States. 88% of policies will terminate without providing death benefits to policy owners or charity. Why?
The number one reason is cost. Policy owners and charities do not have the money to pay for the policy to maturity. What if that is no longer a barrier? With Insuring A Better World Fund, it’s not.
We save lapsing policies and drive their value to charity. By donating an unwanted life insurance policy, donors can make legacy-sized gifts to their favorite charity with a simple, no-cost process. Upon donation, we pay all premium and other costs for donated policies to relieve donors and their selected charities from the financial burden of maintaining the policy.
Not all life insurance policies have the same value. They are all unique based on the insured’s health and premium cost. We change the game by simplifying the process of evaluating policies and taking this burden away from the receiving charities. We are the soup to nuts of charitable gifts of life insurance. Here’s how we do it:
We use our extensive knowledge of the life insurance industry and its actuarial science to predict the performance of a policy and determine which policies will provide value to the charity.
To begin, we ask for a policy’s premium payment information and take the policy owner through a 30-minute health questionnaire. That’s all!
From there, we perform a simple equation: the net death benefit minus the net cost of premium and administration of the policy. If the remaining value is positive, then Insuring A Better World Fund may accept the policy for donation.
Insuring A Better World Fund aggregates life insurance policies from a multitude of donors to take advantage of the law of large numbers, achieve actuarial credibility and know how the portfolio of policy donations will perform. We value each policy at the time of donation.
It would be extremely difficult for any one charity to accumulate enough charitable gifts of life insurance to take advantage of the law of large numbers. A single charity does not know when their donor will die and cannot achieve actuarial credibility without accepting hundreds of policies. With Insuring A Better World Fund, this is no longer a risk for charities.
As deaths occur within a portfolio, Insuring A Better World Fund receives the death benefits and begins sending out donations to each charity within the portfolio.
Each charity receives its pro rata share of the portfolio’s value even if their donor is still alive. If the charity’s donor dies the charity still receives pro rata donations for the life of the portfolio. This means that many donors will see the benefit of their donation to their charity during their lifetime, a paradigm shift for charitable gifts of life insurance.
Not all life insurance policies have the same value. They are all unique based on the insured’s health and premium cost. We change the game by simplifying the process of evaluating policies and taking this burden away from the receiving charities. We are the soup to nuts of charitable gifts of life insurance. Here’s how we do it:
We use our extensive knowledge of the life insurance industry and its actuarial science to predict the performance of a policy and determine which policies will provide value to the charity.
To begin, we ask for a policy’s premium payment information and take the policy owner through a 30-minute health questionnaire. That’s all!
From there, we perform a simple equation: the net death benefit minus the net cost of premium and administration of the policy. If the remaining value is positive, then Insuring A Better World Fund may accept the policy for donation.
Insuring A Better World Fund aggregates life insurance policies from a multitude of donors to take advantage of the law of large numbers, achieve actuarial credibility and know how the portfolio of policy donations will perform. We value each policy at the time of donation.
It would be extremely difficult for any one charity to accumulate enough charitable gifts of life insurance to take advantage of the law of large numbers. A single charity does not know when their donor will die and cannot achieve actuarial credibility without accepting hundreds of policies. With Insuring A Better World Fund, this is no longer a risk for charities.
As deaths occur within a portfolio, Insuring A Better World Fund receives the death benefits and begins sending out donations to each charity within the portfolio.
Each charity receives its pro rata share of the portfolio’s value even if their donor is still alive. If the charity’s donor dies the charity still receives pro rata donations for the life of the portfolio. This means that many donors will see the benefit of their donation to their charity during their lifetime, a paradigm shift for charitable gifts of life insurance.
We work with donors, charities, and financial professionals of all kinds. Learn more about charitable gifts of life insurance, begin the donation process or reach out to our team.
Keep up to date with blog posts from our leadership that simplify charitable gifts of life insurance and offer valuable resources for anyone interested in philanthropy.
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.
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.