Gifts of Life Insurance

Gifts of life insurance offers the donor the opportunity to leave a larger gift to charity than one may be able to donate from other assets. Because life insurance premiums are based on mortality rates, gifts of life insurance are extremely affordable for younger donors, thereby giving the donor an opportunity to make a sizeable deferred gift with very modest out-of-pocket expenses.A donor can purchase an insurance policy and name the Foundation as the owner and beneficiary. When the Foundation is sole owner, all premium payments paid by the donor are fully tax deductible. The policy is paid to the Foundation upon the donor’s death and creates a lasting legacy for the contributor’s designated charitable intention.

A donor can also transfer an existing policy and name the Foundation as the policy’s owner and beneficiary. With this approach, a donor can receive an income tax deduction for the cash value of the policy as well as deductions for future gifts which cover premium payments.
Typically, life insurance gifts are one of the easiest ways to perpetuate one’s gift. Proceeds are most often used to create endowments or donor advised philanthropic funds for the deceased beneficiaries to administer.

Please note that changing your policy’s beneficiary designation is a simple process; however, it can not be done through a will. Contacting an agent or insurer to secure the necessary forms to execute the charitable gift will be needed.

Benefits of gifts of life insurance:

• You are able to make a more significant gift than might otherwise be possible.
• Your premiums are tax deductible if the Foundation is owner and beneficiary of the policy.