Charitable Giving with Life Insurance

Transcript:

Charitable Giving

[video: Text appears that reads "Mutual of Omaha" followed by "Cash Value Life Insurance from United of Omaha Life Insurance Company". This screen disappears and is followed by an illustration of a hand holding a heart. This is followed by an illustration of a document that reads "Life Insurance" with dollar signs animating across the screen in the background.]

It’s a great feeling to be in a position to generously donate to a charity or institution you believe in. But, did you know that life insurance helps make it possible for you to give more to your favorite charities than you could by simply making a donation right now? That’s because you can make premium payments over time. And the policy benefit could potentially be more than the premiums paid. Life insurance can also reduce the impact the charitable gift has on your family’s inheritance.

[video: An illustration appears of a silhouette of a family including a mother, father, and child. The number "4" appears followed by 1. "Do More With Less" and bar charts of premiums being lower than death benefit. The screen then shifts to 2. "Preserve Your Estate" and an illustration of a gift. The screen then shifts to 3. "Provide an Immediate Gift" and two illustrations, one of a clock and the other of a padlock. The screen then shifts to 4. "Receive Favorable Tax Treatment" and text that reads "Estate Tax" and "Income Tax" with arrows pointing downwards.]

Here are four things to think about as you consider using a life insurance policy for charitable giving. First, because the total life insurance premiums are generally less than the death benefit, you may be able to make a substantial gift – for a smaller amount of money. Second, A gift of life insurance allows you to support a favorite charity without reducing the amount of your estate. Third, life insurance proceeds are paid immediately and don’t go through probate. This also allows your gift to be made privately and without public record, if you choose. Fourth, depending on how you structure your charitable gift of life insurance, your estate can receive an estate tax deduction for the amount of the death benefit. Or you may receive an income tax deduction on the gift of the policy and the premiums paid.

[video: Text appears that reads "Leave a Lasting Legacy to Your Favorite Charity". This is followed by an illustration of a document that reads "Cash Value".]

Consider if charitable gifting using life insurance may be right for you. Your gift can help you leave a lasting legacy. And, more important, it can have a significant impact on the charity that means so much to you. Cash Value Life Insurance, with its emphasis on lifelong protection with the potential for cash value growth, can be an especially attractive choice for a charitable giving plan.

[video: Text appears that reads "Mutual of Omaha".]

This video does not provide all the terms and conditions of the policy. Any decision to purchase an Indexed Universal Life Insurance (IUL) policy should be made only after reviewing the policy and additional information about the policy.

Under some circumstances, certain amounts received from an IUL policy are subject to taxes. For example:

• If your contributions to the policy exceed certain limits, your policy may become a “modified endowment contract” under federal tax law. If so, any loans or withdrawals would be taxed as ordinary income to the extent of any gain in the policy and, if the policyowner is under age 59-1/2, would also be subject to a 10% penalty tax
• If your policy terminates following a grace period or if you surrender your policy, the amount of any outstanding loans would be taxed as ordinary income to the extent of any gain in the policy

Life insurance is underwritten by United of Omaha Life Insurance Company, 3300 Mutual of Omaha Plaza, Omaha, NE 68175.

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