Cost Recovery Life Insurance:

Members of the Elder LifeCare Foundation who are 60 years old or older may seek quality of life enhancements offered by the foundation that include housing and healthcare opportunities paid for directly by the foundation. So that the foundation may have the financial ability to provide and continue providing quality of life opporunties for existing and future members, the Foundation will ask participating members to grant permission to the foundation to apply for and own a life insurance policy on the value of their lives. Future mortality benefits will enable the foundation to face the current financial risks associated with providing benefits and to recover the costs to ensure future generations of need will be met.

The Foundation uses life insurance only to protect against the risk of paying for current and future services that could cause potential short falls in the endowment. The life insurance policy is not used to facilitate or inspire present day capital requests.

The cost recovery objective of using life insurance will allow the foundation to continue providing benefit services to the exponentially expanding needs of the retirement explosion currently in progress. Like all life insurance policies, the face value is determined by predicting the potential financial risk of providing long-range quality of life enhancements costs. And, the cost will not be the same for all members. The decision to ask permission to write policies is totally at the discretion of the Foundation and is solely determined on predicted risks.

With regard to how much insurance we write on a grantor's life, the answer is contained in the following definition and applies only in circumstances where the applicant owner is a private charitable foundation.

Face Value Request is cost benefit determined:

Face value requested by the applicant owner on a grantor's life is determined by the cost value of the program (or programs) required to return services judged by the grantor as critically necessary to sustain his or her quality of life.

The face amount of insurance issued is directly determined by the predicted program benefit costs and the costs associated with financing the risk.

Granting the foundation permission to purchase a life insurance policy on your life will cost the elder member nothing. ELF will assume the risks of paying all fees and premiums. The life insurance asset created by your life enables the foundation to weather the risk of expenses by ensuring that the costs of providing quality of life enhancements will be eventually restored.

See Sample Life Insurance Benefits choices
Economic Approach to Humanitarian Innovation