Balancing philanthropy and life insurance

Australians are generous donors to charity – according to the 2022 World Giving Index, we ranked 4th out of 119 countries.

Many people donate through their wills, but did you know you can also use your life insurance to donate? Here are some things to consider if you’d like to support charity through a claim payment .

Using life insurance for charitable giving

Some life insurance policies are designed to be flexible enough to allow donations to charity.

Some of these may include:

• Policy donation: policy owners can choose to donate some or all of their policy payout to charity.
• Naming a charity as a beneficiary: policy owners can simply name their charity of choice as one of their beneficiaries.

Let your loved ones know your intentions

In Australia, your will can be challenged if you exclude someone – say, a spouse, child or other dependant – who might reasonably expect to be provided for by your estate.

Conversations about inheritance can be awkward, but letting your family know your wishes while you’re alive may help prevent conflict (and courtrooms) further down the track.

Make a charity your back-up plan

Some people choose a charity as a contingency plan: for example, if your preferred beneficiaries were to predecease you, you could nominate your favourite charity to receive your estate instead.

Giving to your favourite charity is a way of making a lasting contribution to the things that matter to you.

If you’re considering this option as part of your investment or estate planning, HPartners can help you explore the options that best suit your needs.

Reference: https://www.aihw.gov.au/reports/australias-welfare/philanthropy-and-charitable-giving

Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it, you should consider its appropriateness for you, having regard to those factors. Before making any decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement.