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What
makes this program unique is that the
client’s money is sent to The Hartford
Life Insurance Company and is
professionally managed.
The
charity always purchases a
period certain payout contract,
usually 25 years, that produces a cash
flow to the client or in the event of
the client’s death, a named
beneficiary. This process allows the
Charity to focus on the organization’s
primary mission, while providing
donors peace of mind from investment
risks, longevity risks, and cash flow
risks.
The
Hartford Life Insurance Company, a
company with nearly a 200 year history
in the United States with assets in
excess of 325 billion, guarantees each
payment.
The cash
flow is set up on a direct deposit to
the client’s bank from The Hartford.
The Hartford will send the 1099 year
end tax information to the client
every
year. |
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There
are two applications needed for every
“ChIP”.
The
first is an application with the non-profit which gives
pertinent information about the donor, the beneficiaries,
and the
assets to be exchange. The second application is The
Hartford Life Application which identifies the monthly
benefit, the start date, the duration of the payments and
the
client’s name.
The relationship between the non-profit and Hartford Life is
an institutional one where by the charity purchases a period
certain contract from Hartford, there is
never
a
commission paid to anyone from The Hartford in this
transaction.
The Hartford strictly issues the contracts, manages the
money, and makes the payments according to the funded
contract
directly
to
the client.
The Hartford does not promote any specific programs for any
charity. However, they do
manage money on behalf of charities that wish to use their
professional services. This is a planning tool to be used by
experienced planners on an individual basis.
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