The LifePoint Tax Advantage

Beyond ending expensive premiums payments, policyholders who donate their life insurance to LifePoint receive a significant tax credit.

Once your life insurance policy’s worth has been determined by a third party actuary, you will receive approximately 40% as a tax credit to be applied to your tax liability within a five year period. Because most life insurance policies have a high net worth, LifePoint’s tax advantage could potentially have you tax-free for up to five years. The money that you will save from no longer paying premiums, combined with the LifePoint Tax Advantage gives you a sizeable financial benefit.

Take the example of Chris Benoit, a 72-year-old policyholder who donated his life insurance to LifePoint Foundation Canada. Chris was paying a $26,000 annual premium on a $1,000,000 Term-to-100 policy. Based on life expectancy and premiums due, a third party actuary determined his policy was worth $495,210. Chris’ taxes were around $32,000 per year. Chris received a tax credit worth approximately $195,000 (40% of a $495,210 policy value), allowing him to apply that credit and eliminate his tax liability for the next five years.

Chris donated, LifePoint covered his premiums, and a cause Chris cared about benefitted from his generosity. This gave him the freedom to do more of what he loves to do and worry less about his financial future.

Policyholders just like Chris are taking advantage of this unique opportunity— and so can you.

 


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