If a policy you already own has outlived its original purpose (if, for example, your children have grown), do not cancel it – instead use it to help a ministry close to your heart by naming Great Lakes Bible College as a beneficiary for a percentage or for the full amount of the policy. Your heirs may ultimately benefit because your estate will receive a tax receipt (and substantial tax savings) for the value of the donation.

If this option is favoured by you and your family, you will receive a charitable income tax receipt for the year in which you transfer ownership, based on the current surrender value of the policy plus any accumulated dividends and minus any outstanding loans. You will also receive a charitable receipt for any premiums that you keep paying.

You may not have to pay premiums indefinitely, because most whole life policies have a premium offset option. After seven to ten years, the dividends usually become sufficient to cover the cost of the annual premium and you no longer need to pay to keep the policy in force.

You can also donate a paid-up policy that you no longer need. You will receive a charitable income tax receipt for the surrender value and any accumulated dividends, minus any outstanding loans.

You can also purchase a new policy to benefit continuing Christian education. Although the new policy has no current surrender value, should you make the Great Lakes Bible College the owner and beneficiary of the policy, your tax benefits can increase dramatically. If it is structured properly, you will receive a tax receipt for premiums you pay. In addition, the amount of your gift will continue to grow as the cash surrender value of the donated policy increases.

Perhaps you wish to name Great Lakes Bible College as beneficiary of a joint policy covering you and your spouse. This provides you the benefit of one premium payment instead of two; in addition, if the policy is structured properly, a tax receipt for payments made will be given. Proceeds will be paid to Great Lakes Bible College only after both parties have passed on.

Make Great Lakes Bible College the owner and beneficiary of a new or existing policy and the tax benefits can increase immediately and significantly. This option entitles you to a tax receipt annually for any premiums you subsequently pay.

You cannot claim any tax credits during your lifetime if you name Great Lakes Bible College as the beneficiary of your life insurance in your will without transferring ownership of the policy. However, your estate will benefit from a tax credit if you name your estate as the beneficiary of the plan and make a bequest to Great Lakes Bible College in your will. The gift is treated as a charitable donation in the year of your death and is eligible for a tax credit on your final tax return or in the previous year’s return.

Retirement funds you no longer need can have a tremendous impact when donated to the ministry of Great Lakes Bible College. When you name Great Lakes Bible College as beneficiary, your estate will receive a receipt to offset taxes due from the distribution of the RRSP or RRIF, which are among the most heavily taxed assets you own.

By naming Great Lakes Bible College as the beneficiary to your registered plan, the plan does not form part of the estate assets that require probate. This may result in significant savings in some provinces where the fee is charged on the value of the estate. A beneficiary designation can be made directly on the RRSP or RRIF application form and can be changed only by the annuitant.