Gifts of Life Insurance

An Attractive Alternative

A gift of life insurance is an affordable way to make a difference if you do not have sufficient liquid assets to make a cash donation. Flexible donation options are available to help you decide how you want to give in order to meet your charitable and tax planning goals. Your gift of life insurance will help us keep breakfast programs running for years to come.

Ways to donate your life insurance policy

  1. Name Breakfast Club of Canada as the beneficiary of your existing life insurance policy. Your estate will receive a tax receipt for the amount of the death benefit (Scenario #1). The policy will remain under your control at all times.
  2. Take out a new life insurance policy and name Breakfast Club of Canada as the policyowner and beneficiary. The premiums you pay on the policy will, as a result, be eligible for a tax receipt. Premiums are lower in the case of a joint policy (Scenario #2).
  3. Make the Club a policyholder of an existing life insurance policy. As the donor, you will receive a tax receipt for the fair market value of the policy at the time of the transfer. If you continue to pay the premiums, you will be issued a receipt for the corresponding amount. And you will maintain control over the policy.

Benefits of a life insurance gift

  • Smaller current cash investment now for a larger future gift
  • Acknowledgement during your lifetime (regardless of the selected option)
  • A charitable tax receipt for you during your lifetime or for your estate (depending on the option you choose)

Giving, easy, convenient, powerful

  1. Talk to your financial advisor or your insurance agent to determine how a gift of life insurance can benefit you and your estate.
  2. Contact us and your insurance agent if you wish to transfer a policy to the Club, take out a new policy or append the current policyholder as a gift to Breakfast Club of Canada.

Scenario 1

The Club is named as the designated beneficiary and the donor remains the policyholder*

Life insurance policy with a $50,000 death benefit payable over 15 years and an annual premium of $1,000.

Cost of premiums ($1,000 x 15) $15,000
Tax credit during donor’s lifetime $0
Donation upon death $50,000
Tax credit for estate ($50,000 x 50%*) $25,000
The donor will pay $15,000 during their lifetime. After their passing, the estate will be issued a receipt for a $25,000 tax credit to reduce the amount of tax payable.

Scenario 2

Donation of a new life insurance policy (The Club is both policyholder and beneficiary)*

Life insurance policy with a $50,000 death benefit payable over 15 years and an annual premium of $1,000.

Value of donation $50,000
Annual donation (cost of premium) $1,000
Tax credit for the donation ($1,000 x 50%*) $500
Annual donation cost $500
*Scenarios shown here are for illustrative purposes only. Tax and tax credit rates (for Quebec) rounded to 50% to simplify calculations

The content provided on this page is for informational purposes only and is not meant to serve as legal or professional advice. Before taking any actions based on this information, it is crucial that you consult with your own legal or financial advisors. This will ensure that any steps you take are well-informed and tailored to your specific financial and estate planning needs.