Frequently Asked Questions for Charities

Our mission is to transform unneeded or unwanted life insurance into philanthropic ideals. The same life insurance products that protect families from unforeseen tragedies – policies that are often wasted when policy owners stop paying the premium – can now help cure disease, educate children, support the arts and ensure a better world for us all. We need your help and we were created to help you!

The following are answers to some frequently asked questions from charitable organizations about the Insuring A Better World Fund:

 

Q. Who is Insuring A Better World Fund?

The Insuring A Better World Fund is a charitable program operated by the InterVivos Foundation, a tax exempt, publicly supported charity under Section 501(c)(3) of the Internal Revenue Code. 

Q. What does Insuring A Better World Fund do?

Insuring A Better World Fund works with charities, insurance professionals and donors to identify unneeded and unwanted life insurance policies suitable for donation. Insuring A Better World Fund pays all premium and other costs of donated policies for the benefit of the donor’s chosen charities.

Q. How does Insuring A Better World Fund work?

Owners donate their unwanted life insurance policy to Insuring A Better World Fund. Insuring A Better World Fund pays all premium and costs and administers all accepted policies. Insuring A Better World Fund then distributes the net death benefits to charities chosen by donors and our Board of Directors.

Q. What are the benefits of working with Insuring A Better World Fund?

New large source of revenue; No costs or administrative burden; Paradigm shift, aligning your charity with your donor; And much more. Please see our Benefits to Charities page.

Q. Who pays all the premium and other expenses?

Insuring A Better World Fund does. Neither you or your chosen charity is responsible for paying any future premium or other costs of donated polices. Donors choose; Insuring A Better World Fund pays; and charities receive the benefits.

Q. How can charities benefit from their donor’s gift during the donor’s lifetime?

Charities chosen by the donor will receive their pro rata share of all death benefits in their portfolio received by Insuring A Better World Fund, after payment of premium and expenses. Insuring A Better World Fund’s proprietary aggregation technique pools together hundreds of donated policies to achieve actuarial credibility. This allows for a regular stream of cash from a large portfolio of policies.

Q. How are charities’ pro rata distributions determined?

Donors will gift their unwanted life insurance policies to Insuring A Better World Fund and specify which charitable organization they wish to support in our grant form. Insuring A Better World Fund values each policy at time of donation. Insuring A Better World Fund will distribute to the named charities their portion of the total death benefits received, after payment of the premium and other expenses, based on the total value of all polices donated by each charity’s donors in the portfolio.

Q. What are the obligations of supported charities?

Insuring A Better World Fund’s supported charities are NOT responsible for paying premium or any other expenses of donated policies. Nor are supported charities required to augment or change any of their existing staff. There are no administrative burdens or costs to charities. Insuring A Better World Fund’s supported charities are expected to (i) recognize a donor for their donation to the charity; (ii) agree to use only informational documents supplied by or approved by Insuring A Better World Fund (to ensure accuracy and protect the integrity of the program); and (iii) maintain their status as public tax-exempt charitable organization.

Q. What can a charitable organization do to increase the distributions it receives from Insuring A Better World Fund?

Tell your donors about Insuring A Better World Fund to increase the amount of donated policies naming your charity. Insert Insuring A Better World Fund into your solicitations; newsletters, website and other information pieces. Choose from our Insuring A Better World Fund implementation plan – newsletter piece, targeted letters, selected calling.

Q. Are all policies accepted for donation?

No. Insuring A Better World Fund utilizes its management’s years of experience and expertise in underwriting and evaluating life insurance policies. We evaluate policies offered for donation to determine whether charities would benefit from the donation. If a policy is appropriate for donation, Insuring A Better World Fund accepts it and pays premium and all other costs.

Q. Does Insuring A Better World Fund accept policies that have already been donated to our charity?

Yes. Please contact us for a full review of the charity’s current life insurance policies and for more in-depth information of how Insuring A Better World Fund can pay the premium on polices already donated to your charitable organization.

Q. Will Insuring A Better World Fund bring new donors to their supported charities?

Yes. New donors will be found through our network of life insurance professionals and other referral sources (e.g., CPAs, attorneys and other financial advisors). Additionally, new donors will be found through your charity’s network of life insurance professionals and other referral sources. Now you have something new to talk about that does not cost your donor money.

Q. Can a donor receive a tax deduction for donating to Insuring A Better World Fund?

Yes. Donors may be entitled to receive a charitable deduction* based on the full fair-market value of their donated policies as calculated by a qualified, appraiser.

*Please note that we are not tax advisors and cannot give tax advice. Please have your donors consult with their tax professional for their specific circumstance.

Q. How is this different from a life settlement?

Insuring A Better World Fund is not a life settlement. We are a charity. We do not purchase life insurance policies. There are no life settlement investors who demand a return for purchasing your policy. Insuring A Better World Fund makes donating unwanted life insurance to charities efficient and easy by (i) paying the premium and all other costs; (ii) aggregating donated policies to create a steady revenue stream for our supported charities; (iii) distributing the net benefits to the charities.

Q. How do we get started?

You can call Insuring A Better World Fund at (312) 819-0790 and ask for David or email us at ds@iabwf.org.