Life in the Brazos.com

Matthew Chalmers

The Financial Foundation

The Gift of a Legacy

By: Matthew E. Chalmers, Northwestern Mutual Financial Network

Many of us support a charitable organization or an important cause. Whether we demonstrate that allegiance through donating money or volunteering time, non-profit organizations stand to benefit greatly through such personal commitments. This is particularly true at a time when these organizations are supported less and less through government funding and tighter corporate budgets.

The gift of life insurance is one option for achieving philanthropic goals through charitable contributions. In general, a donor applies for a permanent life insurance policy and names the charity as both the owner and beneficiary of the policy. Since the charity is the owner, the donor's annual premium qualifies as a charitable gift and may be tax-deductible in some instances.

As beneficiary, a charity receives proceeds on a tax-free basis upon the donor's death. If the charity is also given ownership of the policy, it has access to the cash value throughout the donor's lifetime.

Giving the gift of life insurance can be practical and affordable way to leave your legacy while making an important and substantial impact on a cause near and dear to your heart. For more information on this and other similar subjects, I invite you to visit the article library found on my website at http://www.nmfn.com/matthewchalmers/learnctr--articles--article_library, or feel free to contact me at (979) 846-0668 or matthew.chalmers@nmfn.com with any additional questions.

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Matthew E. Chalmers is a Financial Representative with Northwestern Mutual Financial Network, the marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company (NM), Milwaukee, Wisconsin, its affiliates and subsidiaries. Financial Representative is an insurance agent of NM based in College Station, Texas.