Americans like to give. Whatever their motivation, people like to know that their donations matter. While many Americans are generous throughout their lifetime, not everyone will make donations to charities in their wills or through life insurance. This product marketing guide walks you through the concept of Legacy Giving through life insurance. This introduces prospects to the possibility of making larger donations to the charity of their choice, through a life insurance death benefit, than they may have otherwise been able to.
Charitable Giving in General
There are many ways to make charitable donations while they are alive or at their death. Here are a few of them:
•Gifts of appreciated property
•Gifts made through a will or trust agreement
•Charitable remainder trusts
•Gifts of a remainder interest in a personal residence
•Gifts of life insurance
These are concepts you should be familiar with; however, a number of them require specialized knowledge held by tax advisors and attorneys. Build relationships with these specialists so that you can refer prospects to them when necessary. As life insurance professionals, we will focus on gifts of life insurance.
Leave a Legacy Through Life Insurance
As you talk about Legacy Giving, you may find that many prospects have never considered donating life insurance before. Most people think of outright cash gifts when they think of donations. But, there are advantages to giving life insurance. Through the death benefit of a life insurance policy:
The donor may make a larger donation.
The recipient receives the death benefit income-tax free
Death benefit proceeds avoid the hassles of probate
Why People Donate
People donate for a variety of reasons including: leaving a legacy, gaining influence in their communities, making a social impact, demonstrating their values and beliefs, protecting their wealth, and passing along values to family members. An added incentive for many is the income tax deduction that may be available with donations.
What People Donate To
Following is a list of organizations and charities that people commonly make donations to:
Zoos, aquariums, gardens
This list is not exhaustive, but it can help you get prospects thinking about what causes, organizations or institutions they would consider donating life insurance to.
Who to Target
Use referrals and personal observation to identify Legacy Giving prospects. Here are some common types of prospects to approach:
Existing, mature members
Volunteers (hospital, animal shelter, nature center, etc.)
People who are active in their churches or in their communities are great individuals to approach with the Legacy Giving concept. Look for people who volunteer at the local hospital, animal shelter or nature center. They might be interested in making a sizeable donation through life insurance to further the work they care so much about.
Pastors and leaders of other non-profit organizations are acutely aware of the need for a steady source of funding. Approach them about holding a seminar for members of their parish or organization about Legacy Giving using life insurance. At the group meeting, you can show attendees how they can support future opportunities through life insurance.
Selling the Legacy Giving Concept
Once you have read through this product marketing guide, built a list of prospects from observation, referrals or purchased lists, you are ready to begin your sales approach. As you prospect, consider incorporating a question about charitable giving into all of your sales appointments. Simply asking a question about what charities a person gives to can open the door to the development of a Legacy Giving plan.