Frequently Asked Questions for Life Insurance Professionals & Advisors

Our mission is to transform unneeded or unwanted life insurance into philanthropic ideals. The same life insurance products we sell 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, alleviate poverty and ensure a better world for us all. We need your help!

The following are answers to some frequently asked questions from life insurance professionals and other advisors 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 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. How do insurance agents and other professional advisors benefit?

Insuring A Better World Fund provides added value to the client; income opportunities for you; increased job satisfaction and a simple, easy, no cost process. Insuring A Better World Fund also strengthens the association between life insurance and charity. Moreover, Insuring A Better World Fund enhances and improves all the products the industry sells by providing an attractive exit strategy for clients. See our Benefits to Life Insurance Professionals & Advisors page for more information.

Q. Who is eligible to donate?

In general, any owner (i.e., individual, trust or corporation) of a life insurance policy where: (i) the insured is aged 65 years or older; (ii) the policy has a death benefit of $250,000 or greater; and (iii) the policy was purchased more than three years ago. There are exceptions which may expand the eligibility.

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.

Q. What types of life policies qualify?

All types of life insurance policies, including whole life, term, universal life, survivorship life, group life, etc.

Q. Who pays all the premium and other expenses?

Insuring A Better World Fund does. Neither your clients nor their chosen charities are 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. Can my clients select which charities benefit?

Yes. Donors choose the charity they wish to benefit. Our Board of Directors reserves the right to determine whether the charity is appropriate and maintains its charitable status.

Q. Will my client receive a tax deduction for donating?

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

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

Q. How is this different from a life settlement?

Insuring A Better World Fund is not a life settlement. We do not purchase life insurance policies. We are an IRC 501(c)(3) charity. There are no life settlement investors who demand a return for purchasing your client’s policy. Instead, there are charities putting your client’s policy proceeds toward good works. 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; and (iii) distributing the net benefits to worthy causes.

Life Insurance professionals act on behalf of the client. If your client wants to sell the policy, sell it. The number of policies in force is so large that Insuring A Better World Fund does not have to change human behavior to be successful. A donation to Insuring A Better World Fund involves a much simpler and faster process than a life settlement and the benefits to professional advisors are many. There is no prestige associated with selling a client’s insurance policy to a for-profit corporation. Securing donations to a local or national charity raises the profile of the agent or professional, benefiting your business well beyond the short-term. Please see our Benefits to Life Insurance Professionals & Advisors page.

Q. How do I get started?

Please call us at (312) 819-0790 or email Insuring A Better World Fund at ds@iabwf.org to get started today!