Canada Life announced March 30 that it is marketing a new participating life insurance policy designed for charitable giving. The product, My Par Gift, allows clients to make a one-time payment, eligible for a tax receipt, to purchase a policy for their favourite Canadian charity. “The registered charity becomes the owner and beneficiary of the fully paid policy and all of its associated benefits,” the company writes in its announcement about the product.
Without getting into specifics about minimum premiums, the product reportedly builds cash values which the charity has access to during the insureds’ lifetime. “Withdrawals or unpaid loans will decrease the size of the charity’s payout,” they write. Potential dividends may also be paid out or used to buy additional insurance coverage.
The single premium payment qualifies as a charitable donation, they add, saying it is the charity, not Canada Life, which issues the receipts.
“Permanent life insurance is one of the most cost-effective ways to donate to a registered charity,” they conclude.
The product was developed with assistance from the Canadian Association of Gift Planners and is available after March 30 through advisors.
