COVD-19 has given many of us time to reflect on the things that matter most in life. Aside from your relationships with the Lord and your partner in life, the two most important relationships to follow are your children (okay…grandchildren) and the causes that have touched your heart over the years. Interestingly enough, COVID-19 has opened up some doors for you to help protect both your children and your charities.
In speaking with various insurance carriers over the last month, all of them are seeing more small life insurance policies being bought than at any time in recent history! This is wonderful news. Prior to this only 59% of Americans had any life insurance. That may not give you much pause, but the fact that about half of those are under insured sure might. 1. Do you want to know if you are? Check out this handy calculator from Life Happens.
Better yet…pass this along to your grown children. We have yet to see a young couple have adequate resources or insurance in the event of a death or disability. It is a BIG issue, but the little-known fact is that it doesn’t cost as much as most people believe it does to fix. In fact, the response we usually get is, “Really? That’s all?”
Take for example a husband aged 35 with small children. If he is in good health, he can buy $1,000,000 of life insurance for the next 20 years for less than $550 per year. And, by the way, that isn’t the cheapest insurance. It’s with an awesome carrier that allows that him to change that to a permanent policy at any time he wishes without having to be medically approved again.
Better yet again…he could probably get it without much, if any, medical underwriting. All it would take is a 5-minute phone call and a signature!
Tell your kids to call us or simply go to our website and get a quote in a matter of minutes.
On another front, Coronavirus has put a significant financial pressure on charities. Some of them are on the front line shelling out as much as they can for immediate or critical needs. Some aren’t necessarily considered on the front line, but they are no less important and are suffering all the same due to a lack of donations.
There is a silver lining for many of these charities, but it will be up to their donors and biggest advocates. Donors have the opportunity to gift more and deduct more than ever before! 2020 is the perfect time to set your charitable inclinations in motion and be an advocate to tell everyone you know as well.
You can literally offset 100% of your Adjusted Gross Income with charitable gifts this year and pay zero federal income tax. Think about this: Suppose you’re over 59 ½ and have an overstuffed IRA. It is just sitting there waiting to give you a tax headache or maybe it already is. You could take the entire amount out and make a cash gift to your favorite cause tax-free.2 Oh, and by the way, corporate maximum gift amounts increased too.
Better yet…you can give your charity more than what is in your IRA with only your IRA dollars. This is where we come in.
A lot of families have expressed concern about their favorite charities after they are gone. They are major donors and don’t want this income to simply disappear when they die. Now is the time for these strategic gifts to be set up. You can secure this for your charity, but it takes a little planning. If done right, you could get the deduction now and not give up any revenue or income generated by the assets it takes to do it.
One last thing…and this one is an unexpected bonus. What if you could take care of your family and your charities in one fell swoop – have your cake and eat it, too? You can use charitable strategies to help fund college education, retirement, and many more things. You just have to ask us.
“When people are protecting something truly special to them, they truly can become as strong as they can be.”—Ramenswag
Protect those special things in your life and see how strong you become!
- This is on the federal level. State income tax levels may vary.