Thinking ahead

Brian and Irene Hall have left a legacy to their community through life insurance

Brian and Irene Hall moved to Grand Bend 27 years ago. Brian opened his business, Navigator Financial Services, in 1982, and Irene joined him in 1989. Active in the community for many years, the couple recently made a gift of life insurance to the Grand Bend Community Foundation.

Their gift is in keeping with Brian’s approach to financial planning, which is based on setting clear goals and creating a plan to achieve them. In fact, he usually asks clients if they want to create a charitable legacy as part of their financial plans. Many are interested in continuing to support favourite causes beyond their lifetime.

There are several ways to make such a gift, but Brian says life insurance has some significant advantages. It allows you to make your gift from income, rather than from assets, often at a time when your earning potential is at its highest. Because insurance payments are treated as charitable donations, there is also some tax relief. The proceeds from a life insurance policy go directly to the organization you name, ensuring that your plans are fully realized, and your gift is completely private. In addition to a new policy, it’s possible to sign over an existing policy that is no longer needed to your charity of choice.

“The big incentive,” says Brian, “is that someone of modest means can make a very sizeable gift.” For example, for a 55-year old couple a life insurance policy yielding $250,000 would cost approximately $1,700 annually. With a tax credit of approximately 40%, the net cost would be about $1,000 or just $2.80 a day.

The Halls made their gift to the Grand Bend Community Foundation because it allows them to support two projects close to their hearts – the Community Health Centre and water quality initiatives. Says Brian: “With the Community Foundation, you can have one policy and divide the proceeds in any way that is meaningful to you. I can’t imagine why you’d do it any other way.”