I lost track of these newfangled charitable insurance "too good to be true" schemes a few years ago. CHOLI stood for Charitable Owned Life Insurance, which was a version of STOLI (Stranger Owned Life Insurance).
Anyway, thanks to an anonymous friend who provided me with these links, if you want some enjoyable vacation reading on the topic, check out this summary piece posted by a law firm: http://www.bricker.com/publications/articles/1470.pdf.
If you are really a glutton for punishment, check out the full decision: http://www.bricker.com/legalservices/industry/insurance/09a0187.pdf.
I have to admit that I haven't read either carefully but I really plan to do so soon.
So who is going to "The CHIEF Plan Luncheon" on June 24, 2009 in NYC? They sent me a package and invitation by overnight mail. (CHIEF stands for Charitable Insured Endowment Fund plan)
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I attended last week's CHIEF luncheon, as insurance is an area the Library has not explored much to date. This is due to two reasons: first, few of our donors have approached us about it, and second, we have been leery of the "schemes" out there. One Barry Kaye fan has been encouraging us in recent years, but otherwise, only inquiries from business folks wanting us to serve up names of insurable supporters--not something we have been comfortable doing for fear of damaging donor relationships and possible reputational damage if not financial liability.
CHIEF proponents, National Madison (Same Radin and Tom Bonhag, principals), seem reasonable and program was well run if a bit thin on details. Still the same basic gimmick, but they presume that the charity will be very actively involved as owner of the policy and, in some cases, payer of the premiums (the "funding benefactor").
Their ideal case is 70 to 85 year old insured, policy worth at least a million dollars, and a second major supporter who is funding benefcator if charity itself does not commit funds to pay premiums. They talked at some length about how the policies can be coordinated with obligations like bonds, deferred compensation, and even chartiable gift annuities. In latter context, Sam Radin said that properly structured and funded policies could in essence serve as reinsurance for gift annuity obligations.
All this with no fees or other cost: National Madison compensated by the insurance provider.
They had Bill Baker (erstwhile head of Thirteen/WNET) introduce the program and a very enthusiastic guy from Buffalo regional Jewish federation give a testimonial (of note, in large part because he was a better speaker than the National Madison people and gave lots of numbers).
Those interested should check out the National Madison website, www.nationalmadison.com. I presume they would be thrilled to talk to any and all interested, whether invited to the recent event or not.
Tom Bonhag is a member of Philanthropic Planning Group of Greater New York (PPGGNY, formerly PGGGNY) and gave us a strong plug--pandering, but I was pleased!
John Bacon
The New York Public Library
President, PPGGNY
A good post on More on Life Insurance Deals Going Down".I did come across a blog http://israel.buildlastingsuccess.com. It’s all about starting home business based on insurance and legal plans for a 36 year old cash-rich company. It is publicly traded on the New York Stock Exchange, and reports directly to the Securities & Exchange Commission. Their 15 consecutive years of RECORD growth... is 100% verifiable
Thanks,
Leo-Best home business opportunity
Life Insurance mainly secures the family of a person financially after his sudden death caused by any kind of accident so that his loved ones cannot get down and out. At the time of agreement between insurance policy and the owner, owner has to pay for the insured one.
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