An Example of How to Give More to Your Favorite Charity – At NO Additional Out-of-Pocket Cost to You

Scenario 1: Making Charitable Contributions the “Traditional Way”…

Example: You are giving, or plan to give, $2,500/year to your church, temple or favorite charity from age 35 through age 65.

You’d donate a total of $75,000 ($2,500/year for 30 years), and you’d get a tax deduction on that $2,500 of income each year. At the end of 30 years, your charity has received $75,000, and you’re out $75,000, but you did something good, right?

Scenario 2: Maximizing Charitable Contributions with Bank On Yourself®

Starting at age 35, you pay the taxes on the $2,500 of annual income you would have sent directly to the charity, which leaves you with $2,000 a year (assuming a 20% tax bracket), which you put into a Bank On Yourself-type life insurance policy.

You do this for the first 7 years.

Starting in the 8th year, you could let the dividends pay the policy premiums, so you’re not paying the premiums out of your own pocket anymore, and then you go back to the traditional way of donating $2,500/year to charity, out of your pocket

Then, when you’re 66, you could start withdrawing $2,500/year (which you can do tax-free, according to current tax laws) to donate to the church, and you could do this ‘til you’re 95 years young.

The Bottom Line If You Live ‘til You’re 65:

The charity gets the $2,500/year you donate directly to them,
starting in the 8th year, from age 43 through 65  $55,000
You could leave the death benefit to the charity = +$97,607
Total that Goes to Your Charity = $152,607


This is more than DOUBLE What the Charity Would Have Received if You Donated the “Traditional” Way!

The Bottom Line If You Live Until Age 85:

The charity gets the $2,500/year you donate directly to them,
starting in the 8th year, from age 43 through 85 $105,000
You could leave the death benefit to the charity = +$58,927
Total that Goes to Your Charity = $163,927

 

The Bottom Line If You Live Until Age 95:

The charity gets the $2,500/year you donate directly to them,
starting in the 8th year, from age 43 through 95 = $130,000
You could leave the death benefit directly to the charity = +$23,062
Total that Goes to Your Charity = $153,062


It’s a Win-Win Situation!

Your church, temple or favorite charity comes out ahead.

You could transform $75,000 into more than twice that amount – at no additional out-of-pocket-cost to you!

All in return for simply deferring the donation you were going to make to your church or charity for 7 years, so your charity can get much more over time.

To find out how this concept could work for you, just click the orange “Get Started” button near the top of the page, to request a free financial consultation with a qualified advisor.

* Examples above are based on 2011 rates and assumptions and current tax laws related to dividend-paying whole life insurance policies, which are subject to change.