Seneca College - RED 2016 - 40

GIVING
BACK

Number of hours of work that a
$1,000 bursary could save a Seneca
student earning minimum wage.

Advice on insurance-based giving

How to give
on a grand scale...
while living on
a pension
THERE IS NO GREATER FEELING than
supporting the causes we hold
dearest (especially when that
cause is educating the next
generation of Seneca students).
But most of us don't have
the means to make five- or six
figure-gifts to our favourite
college. Yet there is another
way to make a big philanthropic
splash, even if you're living
on a fixed income and have
family members you'd like to
support during your lifetime,
and through your will.
By purchasing a life insurance policy, and naming Seneca
as the owner and beneficiary,
you can make a larger gift. All of
your premiums are tax deductible, and you can turn those
reasonable monthly payments
into a major contribution for
a fraction of what you've paid.
This is the approach retired
Seneca Dean of Business
Maureen Dey has taken to
support future students. Her
donation of life insurance
occurs separately from her
estate. This means Maureen's
gift will not be impacted by
estate taxes or professional
fees, and it will go directly to
Seneca after she passes.
"Seneca has given me a great
life, and I want to give back,"
says Maureen. "This gift will
not affect the inheritances of my
loved ones. And I can use the
tax credit during my lifetime."
How does a gift like Maureen's work? Imagine a 65-yearold, healthy donor living in
Ontario purchases a new life

40 RED

2016

insurance policy with the intention of gifting it to Seneca. He or
she names Seneca as the owner
and beneficiary of this "Term
100" life insurance policy, which
has a fixed monthly premium of
just $64 and provides a guaranteed death benefit of $25,000.
(Refer to the chart on the right
for more details.)
Please note: The premiums
a donor pays are based on age,
health and type of insurance
policy. Always talk with a professional insurance advisor to determine the best options for you to
meet your charitable goals.

To learn more about establishing a gift
to Seneca through a life insurance policy,
contact Seneca Senior Development
Officer Debbie Kesheshian:
debbie.kesheshian@senecacollege.ca

DOING THE MATH ON
INSURANCE-BASED GIVING

Your donation to Seneca
can be designated to
financial aid, programs or
capital campaigns.

Annual cost of
insurance premiums

$769.08
($64.09/month)

Tax credit received
annually against
the cost of the premium

$268.64

Actual annual cost of the
premium after tax credit

$500.44

Total cost of the policy
after tax credit
(assuming death at age
81-the current Canadian
average life expectancy)

$8,007.04

Donation to Seneca when
policy is claimed

$25,000

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