Different jurisdictions have different plans in place for life membership in lodges and the appendant bodies. In Virginia, where I am, the plan makes a lot of sense to take advantage of and I opted to do that a while back. Here we have not just a life membership plan but it is actually life membership in perpetuity, meaning that my lodge will get money on my behalf from the plan even after my demise.
The way dues work in any of our organizations is pretty simple. We pay our yearly lodge dues and the lodge is assessed a certain amount for our membership by the grand lodge. What this means is that the lodge only keeps a percentage of what we give it each year. Under my grand lodge’s Life Membership in Perpetuity Plan, the lodge will get that portion of my dues that it would normally retain from the grand lodge, in return for my having given the grand lodge a large lump sum that is invested in an endowment.