Establishing
Charity through Life Insurance
By Yousuf Farooquee
Irvine, CA
Ramadan is the blessed month. A month where all
good deeds are rewarded manifold. Especially,
deeds of charity and goodwill.
The parable of those who spend their substance
in the way of Allah is that of a grain of corn:
it grows seven ears, and each ear has a hundred
grains. Allah gives manifold increase to whom
He pleases: And Allah cares for all and He knows
all things. (2:261)
By no means shall you attain righteousness unless
you give (freely) of that which you love; and
whatever you give, of a truth Allah knows it well.
(3:92)
Indeed, it is only Allah who has given you whatever
you possess. Your life and all your belongings
are the bounties of Allah. The only befitting
way you can express his gratitude to acknowledge
this truth is by presenting your possessions to
those in need. Spending a part of your wealth
in the way of Allah is not only a symbolic expression
of that attitude but also is a duty. Do not think
that spending in the way of Allah will make you
poorer. Allah replaces the wealth many times over.
There are unlimited ways to establish charity
for the less fortunate. A unique way is using
life insurance for charitable purposes. Using
life insurance, you can significantly increase
gifts to charity without any additional cost to
you. If it is your intention to gift some portion
of your wealth to charity, there is no better
way to do so than to maximize the donation and
increase it many times over. You can just use
whatever money you have slated for charitable
giving, whether it is an annual gift of some percentage
of your income or a one-time bequest, to greatly
increase your intended donation. Instead of gifting
the money outright now, use it to purchase a life
insurance policy and name the charity as the beneficiary.
At your death, your charity will receive a highly
optimized bequest.
Furthermore, because current tax laws favor voluntary
charitable giving, there are ways to leverage
a donation to benefit your family. In this way,
the good you do for others comes back to you in
the form of an optimized bottom line for your
loved ones.
Using life insurance to establish a charitable
bequest is a way to create ‘sadaqa-e-jariah.’
The charitable fund is established upon the death
of the insured and can be used to benefit many
charities, organizations or institutions regardless
of race, religion or ethnicity. Furthermore, the
unused funds from your bequest can be stored in
a Donor Advised Fund for future uses. To find
out more about how to implement life insurance
for charitable purposes, please contact Yousuf
Farooquee at (949) 679-2672 ext 145 or yousuf@jamboreegroup.com,
(CA License No. 0D48463).
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