Example: Art lost his wife to cancer last year and has decided to throw himself into various activities to keep his mind off his incredible loss. One of those activities is attending events hosted by Helen Woodward Animal Center which allow him and his dog, Xander (who he adopted from the Center), to attend. Art has really come to appreciate the efforts of the Center because of its work with animals helping people and people helping animals.
While Art does not have considerable wealth or cash flow, he would like to help Helen Woodward Animal Center any way he can. Over the years, he has supported the Center with small monetary and in-kind donations, but wanted to do more. After attending a Planned Giving event, held by the Center, he learned about the Pet Bequest Program, where someone leaves money and direction on the care of their pet should the pet outlive the owner. One of the ways to fund the Pet Bequest is by leaving a life insurance death benefit for the benefit of Helen Woodward Animal Center. The other way to fund the Pet Bequest is to give a lump sum gift to Helen Woodward Animal Center when he passes away.
Art had purchased a $35,000 whole life policy 23 years ago so his wife would have some extra money to pay off bills if something happened to him. Over the years, he had diligently paid the $83/month premiums and, because of dividends, the death benefit had grown to more than $51,000 dollars with a surrender value of more than $23,000! Art decided that since he no longer needed to provide the money to his wife, he could donate the policy to Helen Woodward Animal Center in honor of his wife and for the benefit of Xander. After contacting Helen Woodward Animal Center, Art happily became part of the Pet Bequest Program, with little effort on his part. With his gift, he was able to provide a future gift of at least $51,000. Plus, before his death, Helen Woodward Animal Center would be able to use the policy cash values and dividends as they saw fit. Finally, Art received another benefit: he did not have to pay premiums anymore; so, by funding his Pet Bequest program, Art “found” almost $1,000/year more to help animals like Xander have a better life.