When I meet with clients who are charitably inclined, I frequently advise them that, for tax reasons, the last money they give to charity should come from life insurance. Typically, the first money that should go to charity on death should come from your retirement account or from some asset which has a low basis and is not entitled to an increase in fair market value as a result of death because receipt of these assets can often result in estate, inheritance and income taxes.
Recently, I was having this discussion with a colleague of mine, Adam Altman, about this topic. He advised me that AXA has a special life insurance policy that encourages charitable giving. Apparently, this policy contains a rider that allows for an additional death benefit, whereby AXA agrees to pay an additional 1% of the death benefit, up to $100,000, to the 501(c)(3) organization of your choice. The best part - there is no additional charge and it does not reduce the cash value of the policy.
This program is ideal for those of you who wish to give something to charity, but do not want to take away from anything your relatives will receive.
If you are interested in this program, please contact my fellow Tulane alumnus, Adam at: 732-326-5230.
