Insurance Giving Tool Gains Ground Among Asian Donors

As more wealthy Asian families bring philanthropy into their estate planning, universal life insurance is becoming a popular vehicle for posthumous giving, according to the International Herald Tribune.

Wealth-management experts say such policies can provide greater liquidity and control than more traditional tools such as foundations or charitable trusts. Universal life policies usually carry a guaranteed rate of return, so the insured will know exactly how much money will be left to the charity recipient.

James Aitken, managing director of Private Wealth Solutions at HSBC, said more of the bank’s Asian clients “are now using universal life insurance to give to charity when they are gone, as it allows them to give away much more substantial sums than they might have otherwise been able to.”