PLANNED GIFT GIVING

LEAVING A LEGACY

Philippians 4:19 – And my God will meet all your needs according to his glorious riches in Christ Jesus.

When we have been successful with the gifts God has given us, it is natural to want to give back.  I recently spoke with a man who gives a generous tithe at church every week, and has done so for years. When I suggested using a legacy insurance product to maximize the effects of his giving, his immediate response was “Why would I? I already have life insurance.”

My client’s confusion is understandable, and yet one of the biggest obstacles I encounter in my work as an insurance advisor is the lack of information out there on the ways insurance can be used in charitable giving. Legacy insurance is different than regular life insurance, but the differences might not be immediately apparent. Legacy insurance policies are a way to maximize your charitable donations while also minimizing taxes.  By using an insurance policy, you can support your church or favorite charity in a more significant way than you might otherwise be able.

For example, my client was giving $100 each week at church. With that same $100/week he would be able to purchase a one million dollar life insurance policy, which is payable to the church and guaranteed on his passing. The policy would also be paid up in twelve years, meaning that he will not have to make another payment after the twelfth year of the policy. At this point, he can revert to giving his weekly donation directly to the church, or even purchase another insurance policy.

The multiplication of your giving is only one advantage of a legacy insurance product. This type of policy allows you to receive as well as give. Legacy insurance can provide significant tax benefits, either during your lifetime or after your passing, depending on how the policy is set up.

If the charity is designated as the policy owner, each premium payment can be written off as a charitable donation. This type of setup uses your policy as a tax relief during your lifetime, but does not allow you to change the charity that will be your beneficiary.

On the other hand, you can retain ownership of the policy. In this case you would either name the charity as the beneficiary of the policy or name your estate the beneficiary, with the proceeds of the policy designated as a bequest to the charity of your choice. The charity will write a tax receipt to your estate in the amount of the payment received.  This arrangement can significantly reduce capital gains and other taxes on your estate and increase the money received by your heirs. It also permits you to easily change the charity that will benefit from your policy.

Giving through a legacy policy enables churches and other charities to establish cash flow and invest in capital projects that otherwise may not have been possible.  Buildings and renovations, ambitious programming, and much-needed staff are often paid for using life insurance policies. Using creative planning, a legacy insurance advisor can help you to give more than you might have imagined possible, while providing you and your estate with tax shelter.   Your dream for a lasting legacy is as individual as you are, and with your input a legacy insurance specialist can give you a plan to make that dream a reality.

Isaac Allen is a Legacy Advisor, insurance specialist with Palladium Insurance in Ottawa, www.palladiuminsurance.ca.

We look forward to hearing from you!  Please feel free to send us an email anytime and we will have a message back to you in the same day.

We are sooo passionate about insurance.  Let us work for you and tailor your program to your needs.

Group Benefits, Life Insurance, Commercial Insurance, Auto and Home Insurance, Legacy and Gift Planning we have it covered.

We have highly trained specialists that work in only one sector and master it.  We are the professionals and we are the best at getting your plan into effect.

Palladium Insurance would love to help you.

Let us know how!!!

info@palladiuminsurance.ca

The Ontario Government is in the process of changing auto insurance once again.  This change is going to reduce your coverage considerably compared to existing auto insurance policies.  The reason for the change is in an effort to reduce the fraud in connection with accident benefits and effectively reduce the cost of auto insurance in general.  Somewhere along the line the Ontario auto policy has become an income replacement and rehabilitative care insurance document instead of simply car insurance.  The incoming changes are going to leave several clients in a very precarious situation in the event they do not stand alone income replacement coverage.  IT IS EXTREMELY IMPORTANT THAT YOU SEEK PROFESSIONAL ADVICE ABOUT BOTH YOUR AUTO INSURANCE OPTIONS AS WELL AS YOUR INCOME REPLACEMENT OPTIONS.

Most of the direct channel insurers as well as the banks that participate in the home and auto insurance segment are pretty nervous about these changes.  Their business models are designed to have little or no interaction with their clients and claim to be passing savings onto their customers but not employing adequate licensed staff capable of offering unbiased professional advice.  Please feel free to contact any of our licensed staff in order to arrange for a no obligation review and quote of your home and auto insurance needs.  For your convenience we have also designed our web infrastructure to provide you with real-time quotes 24/7.   Visit www.palladiuminsurance.ca and click on the “get a quote” tab.  You can have the convenience of a 24/7 quoting engine along with the professional advice of a licensed broker who works on your behalf at Palladium.

-Palladium Team

On June 23rd Eastern Ontario had an earthquake. The quake lasted only seconds but did cause some minor damages to buildings and property. Most homeowners insurance contracts specifically EXCLUDE earthquake as an insured peril. However, coverage is available through a number of carriers. For an additional premium charged on the dwelling (building) and contents you can insure that you will have coverage in the event your home is damaged by a quake. The deductible for earthquake coverage depends on the insurance carrier but is normally 1 or 2 percent of the building limit.

Ottawa is in a table 2 fault line and some insurers have actually pulled the coverage for that reason. If you live in Ottawa and frequent the 417 then you will see the fault line heading west on the 417 up the hill towards Kanata from Moodie drive. The rock cut to the right and left is in fact the fault line. Consider insuring your home for earthquake coverage- remember, your home insurance isn’t just a bill to pay. Ask your broker about the cost or availability of earthquake insurance today.

Earthquake insurance is also available for commercial buildings. Coverage can be included with flood insurance on commercial buildings where available for an additional premium.

Today’s quake was the largest in over 100 years. In the late 50′s the St. Lawrence seaway near Cornwall had a 6 or 7 Richter quake. Some older stone buildings fell down and nobody was injured.

For most people their home is their biggest investment. Consider an insurance provider that can recommend the necessary coverages available. Remember, at Palladium we work for our clients NOT an insurance company.

-Palladium Team.

On Thursday June 3, 2010 Palladium Insurance hosted a BBQ for our business partners at The Dominion of Canada General Insurance Company. Representatives from personal lines underwriting, commercial lines underwriting,  claims, and management departments all enjoyed a relaxing afternoon filled with food, beverages, and a tour of our new location.

We would like say thank you to Dominion of Canada for meeting with us, and sharing some of their industry knowledge.  Too often brokers and their company partners are too busy to get together for some “face time”, however at Palladium Insurance we always feel it is an important way to build and strengthen relationships,  as well as to discuss triumps and challenges of the industry.

Just a quick reminder that Palladium Insurance is now open on Saturdays from 9am till 1pm, so if this weekend is filled with rain, why not call us for a quick quote.

Thank you.

-Palladium Team

We not only insure homes and cars, we can offer you competative quotes on your cottage, boat and motorcycle.  Make your “spring cleaning” include calling for a quote for insurance on what you enjoy most about summer!!

-Palladium Team

Welcome to Palladium Insurance.

We have just launched our new and improved website. We will be updating our blogs often with industry information, upcoming events and even answering/addressing some frequently asked questions.  Enjoy our site and feel free to call any of our team if we can provide information, advise or a quotation.

-Palladium Team