Life Insurance

Life Insurance

Many people have life insurance in one form or another. The value of life insurance is usually to provide financial security for your loved ones in the event of your death. Yet life insurance can also be used to support your favourite charities. It can help you make a larger gift than you may otherwise be able to make with your current income or through a bequest.

Benefits of a Gift of Life Insurance:
  • You could make a bigger gift than what may be possible during your lifetime
  • The final value of an insurance gift is guaranteed and normally will not be diminished by taxes, fees or creditors’ payments
  • Life insurance can have a multiplying power that allows a relatively small investment to provide a large tax-free death benefit that can grow even more during your lifetime

There are different ways to make a donation of life insurance. The following information provides a few ideas, and can help you decide if making such a gift to JDRF Canada is right for you.

Purchase a New Life Insurance Policy

You can buy a new life insurance policy to support JDRF Canada in the future.

You can designate JDRF Canada as the owner and beneficiary of the new policy, and make tax-creditable donations to JDRF Canada that are used to pay the premiums.

You receive current tax savings, and because the insurance proceeds pass directly to JDRF Canada outside of your estate, you will reduce probate costs.

Change an Existing Life Insurance Policy

Tax Benefits Later

You may have a life insurance policy that you’ve held for many years, and through which you no longer need to provide financial security for your heirs. You can name JDRF Canada as the beneficiary of the policy. There are no immediate tax benefits to you, because the beneficiary donation is revocable at any time. However, at your death, your estate will claim a charitable donation tax credit for the proceeds of the policy. The tax credit will offset income taxes payable on your estate’s final tax return, and the gift will not be subject to probate fees.

Tax Benefits Now

To receive an immediate tax saving on the donation of an existing policy, you can transfer ownership of an existing life insurance policy to JDRF Canada, and also make JDRF Canada the policy’s beneficiary.

When you transfer ownership of the policy, a portion of its cash value will be taxable as income, but you’ll receive a charitable tax receipt for the entire cash value, because the proceeds of this policy become irrevocable.

If premiums are still owing, you will also receive a charitable tax receipt for every premium you continue to pay on the policy, whether you pay the insurer directly or send funds to JDRF Canada with instructions to pay the premium.

All donors are encouraged to seek independent financial and legal counsel when executing wills, trusts, contracts and other agreements.

Independent Counsel

JDRF Canada will provide you with information and assistance to make a gift of life insurance. However, the ultimate responsibility regarding evaluations, tax deductibility, and/or similar legal local, provincial or federal compliance issues rests with you and/or your counsel.


To learn more, please fill out a request for information, or contact:
Agata Witkiewicz
National Manager, Foundations & Planned Giving
Phone: 416.317.2616
Toll-free: 1.877.287.3533
Email: [email protected]
Charitable Number: 111897 6604 RR0001


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