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New Guardian Term Life Policy Offers a Charitable Donation Feature

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The Guardian Life Insurance Company of America has introduced a term life insurance policy with a built-in charitable benefit rider.

The New York-based mutual life insurer says the new Guardian Level Term policy includes a rider that can pay 1% of the policy death benefit, up to a $100,000 limit, to the 501(c)(3) charity of the policy owner’s choice.

A policy owner can also use term life insurance to give to charity by naming the charity as a policy beneficiary, by transferring dividends to a charity, or by giving an in-force policy to a charity, Guardian says.

(Related: Sun Life Brings Out New UL Policy)

Other insurers have also offered charitable benefit features.

The U.S. division of Sun Life Financial Inc. introduced a universal life policy with a charitable benefit rider back in 2007. That policy let an owner with at least $1 million in death benefits have 1% of the death benefit go to the charity of the owner’s choice, up to a limit of $100,000.

The owner of one of the new Guardian policies can convert the policy into whole life insurance.

The list of policy options also includes a disability waiver-of-premium rider, a rider that can accelerate the payment of benefits when the insured becomes terminally ill, and a rider that can give the owner extra flexibility in connection with term-to-whole-life conversions.

Guardian is issuing the policy through the Guardian Insurance & Annuity Company Inc., a Delaware corporation with main offices in New York.

— Read The Perils of Not Discussing Charitable Planning With Clientson ThinkAdvisor.

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