The insurance is there to insure the repayment of your loan. It is not intended to be resold or owned by a third party. The charity owns the policy and pays the premium. You simply agree to participate in underwriting and sign the application naming the charity as beneficiary of the policy. Your IRA is a creditor of the policy and its death benefit to the extent of the outstanding balance of the loan at your death. The IRA cannot forgive the loan. Your IRA is repaid at your death and the IRA is paid to your named beneficiary. The named beneficiary of your IRA can be spouse, family or the charity. The life policy is a condition of the loan and protects your heirs. Your ability to obtain insurance is an asset. This precious asset can be used to help your charity now and to protect your heirs.

The policy on your life will be based on your age and health. The underwriting process involves a written application and requires access to your physician’s records, but does not necessarily require a physical examination. You may be able to participate even if you think you are “uninsurable.” Our approved insurers are highly rated companies. You should determine whether your current and/or future anticipated insurance needs are satisfied before proceeding.