According to the 2022 ACLI Fact Book, life insurance is a 21+ trillion-dollar asset class. Approximately 88% of life insurance policies lapse without paying a death benefit.
It is estimated that over 265,000 seniors lapse over $150 billion of death benefit each year and this trend promises to continue for years to come.
There are at least 75 000 unwanted Life Insurance policies with a minimum cover of $250 000 that are eligible for donation, In-Tribute, every year
Insuring A Better World Fund (IABWF) is a nonprofit organization (NPO) that accepts donations of unwanted life insurance policies, In-Tribute.
IABWF handles all administrative tasks and expenses associated with donated life insurance policies, relieving the donors of any responsibilities or financial burdens.
As policies become due each year, the death benefits are pooled and distributed among all nominated nonprofit organizations (NPOs). The distribution is proportionate to the number of appeals held for each nominated NPO during each calendar year.
Policies donated In Tribute generate income for each nominated NPO for 15 years.
The IABWF Tribute Program generates extra income for charities by accepting qualifying Life Insurance policies, typically with a minimum coverage value of approximately $250,000, covering individuals aged 65 or older.
75,000 to 100,000 life insurance policies that would qualify for donation are lapsed each year. This represents $billions that could be repurposed for charity, annually.
After accounting for all expenses, on average, IABWF yields 40% of the cover value of each policy for distribution to NPOs nominated In Tribute.
By regularly introducing families to The IABWF Tribute Program, Funeral Directors (collectively) can help raise tens of $millions on top of monetary donations.
How does the program benefit families?
Tribute appeals honor the life of the deceased. A successful Tribute appeal also brings comfort and healing to the grieving family.
The IABWF Tribute Program aims, at a minimum, to double the value of the monetary donations made in response to each appeal, through life insurance policy donation. However, the outcome could be a 400% growth or more.
Simply by opting for The IABWF Tribute Program, families ensure income for their chosen charity for 15 years, regardless of whether any funds are donated to their Tribute appeal, or not.
How is the Income achieved?
This income is achieved by providing individuals with the option to donate an unwanted Life Insurance policy In-Tribute, as a way to honor the life of the deceased, in addition to the traditional option to donate money.
Currently, 75,000 to 100,000 policies that would qualify for donation, are lapsed each year. The key to the additional income lies in the value of qualifying Life Insurance policies.
To be eligible for donation, a policy typically needs to have a minimum coverage value of around $250,000 for an individual aged 65 or older.
IABWF then administrates and finances these policies until they come due. This generates an average return of at least 40%.
How does the process work?
All donated policies are grouped in a pool. When policies come due and IABWF receives death benefits, the funds are also pooled before being distributed to the nominated NPOs. The amount of money each NPO receives from the pooled death benefits is proportionate to the number of nominations each NPO received within the year the Tribute appeal was held.
Each nomination for a particular NPO remains active for 15 years.
This means that once an NPO is nominated, it will continue to receive income through The IABWF Tribute Program for 15 years after the Tribute appeal has taken place. This transforms a Tribute appeal from a one-time donation into a recurring and sustainable source of income for the nominated NPO.
What must you do to join the program?
In Partnership with America’s Funeral Directors