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May I Name a Charity as a Benefactor in my Life Insurance Policy?

For everyone, the issue of who will receive anything we may leave behind on our death is a concern. The majority of people leave the bulks of their estates to family members or even close friends, but what if you have other concerns that are close to your heart? Or (and hopefully this is not the case, but for some people it is a reality) what if you have no family or friends that you would like to pass on the fruits of a lifetime worth of labour?

Well, a lot of people will make out a will that states that a favourite charity or cause is entitled to all or a portion of what they leave behind when they perish. But is the same option available when it comes to life insurance? After all, an insurance policy is not a legal will; it is an agreement between a company and an individual that certain individuals will receive compensation in the event of a death. So does a charity count as a benefactor of the policy if the person paying for the insurance wishes it to be so? And more specifically, is this possible in the province of Ontario?

The answer is yes; life insurance policies in Ontario do allow individuals to name charities to be the recipients of any life insurance premiums or coverage resulting from the death of the plan holder. There are a few caveats, of course, which we will outline below.

Insurance policies and regulations differ between companies, so remember that not all may allow a charity to be named as benefactor. However, most of the big companies do offer this option.

The charity named, as benefactor must be registered as such under Canadian law and in accordance with the Province of Ontario. In some cases it may be necessary to include the name of a contact at the charity in the case of a death.

There is only one benefactor allowed on any life insurance policy, unlike a will. That means if you want to name a charity as benefactor, no one else can claim any money off of that policy.

So if you do wish to make a favourite charity the benefactor under your life insurance policy in the Province of Ontario, it is entirely possible. Just make sure you won’t be pulling any nasty surprises on people you wouldn’t want to!

Article Source: http://articleaddict.com

Do you have a great fund raising idea, but are at a loss as to where you should donate to Ontario charity organizations are always looking for new ideas, funds and volunteers to help them, help those less fortunate in our Province.

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