How to use life insurance to support your favourite cause

How to use life insurance to support your favourite cause

A planned giving strategy that can maximize the impact of your donation while providing you with tax benefits.

April 03, 2025

Most charitable organizations depend on the generosity of donors in order to carry out their mission. You might well be one of those donors. Would you like to help even more? There’s a way to leverage the effect of your donations without actually increasing the cost to you: a donation in the form of a life insurance policy. 

This infographic illustrates the underlying principles and benefits of this approach.

Three facts to know about donating life insurance
Advantages of life insurance over cash donations
How to donate a life insurance policy: three options
Option 2: Donate an existing policy
if premiums are still payable
Option 3: Donate the death benefit from a new or existing policy
To learn more about making charitable donations in the form of life insurance, talk to your advisor.

The following sources were used to prepare this article: 

Centraide, “Gifts of Life Insurance.” 

Chaire de recherche en fiscalité et en finances publiques de l’École de gestion de l’Université de Sherbrooke, “Crédit d’impôt pour dons.” 

Canadian Red Cross, “Gift of Life Insurance.” 

HEC Montréal, “Gifts of life insurance..” 

SFL, “Donations after death: an important tool for charitable organizations… and for you.”