Q.    How much does it cost for the 501(c)(3) charity to implement the Endowment For Life program?
A.    There are no direct costs to the charity to adopt the program.  Endowment For Life never charges the charity any fees whatsoever and bears all its own expenses in the implementation of the program.  The charity may incur incidental expenses while contacting its donor base.

Q.    Does Endowment For Life contact the charities donor base?
A.    Endowment For Life never initiates contact with the donor base.  Endowment For Life will only contact the donor base or their advisors in order to respond to questions or to provide documentation for their due diligence.

Q.    What present or future liability does the charity incur as a result of its being named a beneficiary of the trust?
A.    The charity is purely the beneficiary of the individual irrevocable life insurance trust which houses the life insurance policy.  It is not grantor, trustee nor protector of the trust, and therefore, bears no liability whatsoever.  It is merely the recipient of funds upon the death of the insured/participant.

Q.    What charities are appropriate for this program?
A.    All IRC 501(c)(3) charities will fit the criteria.

Q.    Does the participant receive a charitable deduction for any of the premiums paid by the financing institution or the money spent to seed the trust?
A.    No.  Neither the insured/participant nor the financing institution receives any charitable tax deductions whatsoever.

Q.    Is the death benefit that is payable to the charity included in the insured's estate for estate tax purposes?
A.    No.  The death benefit is paid to the trust that owns the life insurance policy.  The policy is not individually owned by the insured.

Q.    Is this "Stranger Owned Life Insurance (STOLI)"?
A.    No.  "Stranger Owned Life Insurance" assumes that the policy will be sold for a fee by an insured for profit to a third party that will receive the entire death benefit when the insured dies.  That is not the case here.  Both the charity and the financing institution will receive a previously agreed upon portion of the death benefit proceeds.

Q.    Can the participant sell the policy at some time in the future?
A.    No.  The terms of the agreements prohibit the sale of the life insurance policy.

Q.    Can the financing institution sell the policy at some time in the future?
A.    No.  Again, the terms of the agreements prohibit the sale of the life insurance policy.

Q.    Will the participant receive any compensation, directly or indirectly, for becoming a part of this program?
A.    No.  The purpose of this program is to benefit a charity.  There will be no personal financial gain for participating in this program.

Q.    How much will the charity receive at the participant's death?
A.    In conjunction with the Endowment For Life, the financing institution will prepare a chart which will show the year by year death benefit that the charity will receive at the participant's death.  This chart becomes part of the closing documents.

Q.    Does this work for survivorship life insurance?
A.    No.  The program is designed for single lives only.  If both spouses want to become participants in the program for the benefit of a charity, this can be accomplished by utilizing two separate single life policies.

Q.    Is the participant required to take a physical examination to obtain the life insurance?
A.    Yes.  This exam will occur at the very end of the process when it has become apparent that the participant fits within the medical criteria of the life insurance company and the financing institution.  Frequently, this exam is taken at the participant's home or office at the participant's convenience.

Q.    Will every potential participant qualify for this program?
A.    No.  Those that qualify will need to pass certain health and financial criteria.

Q.    Can a participant purchase more life insurance in the future?
A.    Possibly.  That depends upon health and net worth.  This should be discussed with the participant's financial advisor or accountant.

Q.    Can the charity publish the participants' names?
A.    That is a decision that is made by each participant and the charity.

Q.    What is the minimum participant age?
A.    70.  A potential participant will need to wait until that age to join the program.

Q.    What if a potential participant's health is not perfect?
A.    Insurers understand that as people age certain medical problems arise.  The fact that a potential participant is no longer in perfect health does not bar the participant from joining the program.  The Endowment For Life underwriters will make the initial decision, followed up by the insurer and the financing institution.

Q.    If a participant becomes ill several years after the issuance of the insurance policy, can the policy be revoked?
A.    No.  The insurance policy is issued based upon an accurate description of the participant's health as of the date of issue.  Should the participant later be afflicted with an illness, that will not change the terms of the life insurance policy contract.

Q.    Can the participant continue contributing to the charity after joining the program?
A.    Yes.  The financing institution, not the participant, is paying the annual premiums.  Since the total out of pocket payment to this program is $100 which seeds the trust at closing, the potential participant has no reason to discontinue normal annual and/or special contributions to the charity.