Traditionally, life insurance is used to protect loved ones. However, as children age or we become financially secure, the reasons for purchasing life insurance may not be as significant as they once were. Donating life insurance policies to charities is a wonderful and affordable way to leave a lasting legacy of compassion and care.
By donating a new or existing life insurance policy to the Ontario SPCA Huron County Branch you can help ensure abused, abandoned and neglected animals continue to receive protection, shelter and care for generations to come. At the same time you will generate a very generous contribution, typically larger than would be possible out of individual income; and receive tax relief, often in the years of maximum earnings when it is most welcome.
How it works
The gift of an existing policy
If you find yourself with an existing policy that is no longer needed there are two options you may wish to consider
to help animals.
- You can donate the life insurance policy by making the Ontario SPCA the owner and beneficiary. Setting up your policy in this way will allow you to receive a tax receipt for any cash value in the policy and for any premiums that you pay; or
- You can keep the policy in your name and change the beneficiary to the Ontario SPCA. By setting up the policy in this way your estate will receive a tax receipt upon your death, reducing final tax charges.
The gift of a new policy
Many donors decide it's preferable to purchase a new life insurance policy. Again, there are two options to consider
when deciding how to help animals.
- You can make the Ontario SPCA the owner and beneficiary of the policy and receive a tax receipt for the premiums you pay every year. This option is beneficial if you have a high income and would like the benefit of reduced taxes; or
- You can be the owner of the policy and designate the Ontario SPCA as the beneficiary. This will mean that your estate will receive a tax receipt upon your death. This option is beneficial if you have a moderate income and would like to reduce estate income taxes.
Endowment Funds
You may also choose to place the insurance proceeds into an Ontario SPCA Endowment Fund to provide a lasting gift
for animals in need. The insurance proceeds are permanently invested, and only the income is used for the Ontario
SPCA's lifesaving work. You can honour your family, a special person or a pet that you love with a personally named
Fund, or choose a designated Fund to support a specific purpose close to your heart. To learn more,
click here.
Life Insurance examples:
Gift of an existing policy
If you had an existing $100,000 life insurance policy costing you $75/month you could:
| Designate the Ontario SPCA Huron County Branch as the owner and beneficiary of the policy | Donation receipt each year (for cash value in the policy and for any premiums that you pay): $900/year Tax savings: $360 |
| Stay the owner and designate the Ontario SPCA Huron County Branch as the beneficiary | Tax receipt your estate would receive upon your death: $100,000 Amount your estate would save in taxes owing: $40,000 |
Gift of a new policy
If you purchased a $100,000 life insurance policy for a cost of $75/month you could:
| Designate the Ontario SPCA Huron County Branch as the owner and beneficiary of the policy | Your true net cost (after yearly tax savings): $45 per month |
| Stay the owner and designate the Ontario SPCA Huron County Branch as the beneficiary | Tax receipt your estate would receive upon your death: $100,000 Amount your estate would save in taxes owing: $40,000 |
How to make a gift of Life Insurance
For more information about making a gift of Life Insurance, please contact:
|
Ontario SPCA Provincial Office |
 |
Branch Manager |
Thank you for considering making this special commitment.
Note: For legal, tax or investment advice, please consult a lawyer or investment professional.
The Ontario SPCA's full legal name is "Ontario Society for the Prevention of Cruelty to Animals," and our charitable registration number is 889691044RR0002. If you would like to designate your gift to a specific Ontario SPCA Huron County Branch, please list the charitable registration number above and specify the Branch.
Ontario SPCA Fundraising Statement
Protecting animals since 1873, the Ontario SPCA is a registered charity comprised of over 50 Communities relying primarily on donations to fund animal protection, care and rehabilitation; advocacy; and humane education. As such, the Ontario SPCA solicits donors support within Ontario to support its programs and services across the province. The Ontario SPCA Act mandates the Society to enforce animal cruelty laws and provides Society investigators with police powers to do so – making the Ontario SPCA unique among animal welfare organizations in the province. The Ontario SPCA is a member of the Canadian Federation of Humane Societies, the World Society for the Protection of Animals, and is affiliated with the Royal Society for the Prevention of Cruelty to Animals.