Life Insurance Policies
Many families have purchased life insurance policies to provide security for loved ones, protect business interests, or pay estate taxes but no longer need the policy for the intent it was originally purchased. While life insurance can meet a variety of personal financial needs, it can also make a meaningful gift to charity. A gift of Life Insurance is flexible, immediate, convenient, private and economical. Simply contact the insurance company and request a Change of Beneficiary and/or Ownership Form.
There are several ways to make gifts using Life Insurance:
- Name a charity as primary beneficiary or contingent beneficiary to receive all or part of the policy.
- Purchase a new policy and name the charity as the owner and beneficiary. The yearly premiums can qualify as a charitable deduction.
- Give a paid-up policy by simply changing the owner and beneficiary to the charity. You will receive a charitable deduction.
- Give a policy in which you are still paying premiums by changing the owner and beneficiary to the charity. Future premium payments can qualify as a charitable tax deduction.
- Purchase a policy to benefit your heirs, replacing a gift of property of cash made to charity. Any tax savings that has resulted from the gift to charity may be used to offset the cost of insurance purchased to replace the assets donated.
- Assign policy dividends to charity and take a charitable tax deduction on the gift.
Call a staff member to help decide if a gift of Life Insurance is right for you.
