If you're confident that your family will be financially secure when you die, leaving your term life insurance proceeds to a non-traditional beneficiary is a great way to give back to the community
Wheeling, IL (PRWEB) October 26, 2009
AccuQuote, a leader in providing term life insurance quotes to people across the United States, offers advice to consumers considering leaving their term life insurance proceeds to non-traditional beneficiaries.
A non-traditional beneficiary is a person or organization with whom the insured has a unique relationship, such as a college they attended or charity they support. Generally, this option is only considered when a consumer's family does not rely on their salary for financial support or the insured is a key financial contributor to an organization.
"If you're confident that your family will be financially secure when you die, leaving your term life insurance proceeds to a non-traditional beneficiary is a great way to give back to the community," says Byron Udell, founder and CEO of AccuQuote. "However, your first priority is protecting your family, so if they depend on your salary for financial support, consider making small annual donations rather than naming the organization as a beneficiary on your term life insurance policy."
When considering this beneficiary designation option on your term life policy, Udell explains certain conditions that should be followed to help life insurance carriers confirm reasonable use of the proceeds:
Determine if you have a documented history of contributions - By having a documented history of regular contributions to a college or charity, life insurance companies will generally support a consumer's request to designate a non-traditional beneficiary to a life insurance policy - as long as the death benefit amount bears some relationship to a consumer's regular contributions to that organization. "For example, donating just $10 a year doesn't match up very well with a $500,000 death benefit," says Udell.
Consider if receiving tax advantages is important - By working with an organization's treasury or alumni relations department, arrangements can be made to designate that organization as the policy owner, beneficiary and premium payer. The consumer could then present an annual gift to the organization equal to the annual premium payment, which could be considered a tax deductible contribution.
"To determine if this beneficiary designation option is right for you, talk to a licensed life insurance agent at a multi-carrier brokerage firm," says Udell. "They can help you find a life insurance company that frequently designs non-traditional types of life insurance policies and quickly and easily get the process started."
AccuQuote helps consumers find the best values in term life insurance by combining instant online life insurance quotes with the personal service of unbiased life insurance professionals that can help answer questions, identify important issues, and make meaningful recommendations. The company offers consumers an extensive selection of life insurance options, including term life, whole life, and universal life, as well as selected annuities. The website has many handy insurance tools, including a life insurance needs calculator to help you figure out how much to buy, a glossary that explains industry terminology, a collection of articles that cover the basics about life insurance, and a blog which answer many questions about life insurance. For additional information or to get quotes for cheap term life insurance, please call 1-888-314-4455.
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