Life Insurance Gifts
Goal: Make a large gift with little
cost to you
There are several ways you can use life insurance as the basis for a charitable gift.
Making the Charity a Beneficiary of your Life Insurance
Making a Gift of Your Policy
Since their children had grown up and begun lives on their own, the Walkers decided to review their finances. They realized that some of the insurance they carried while the children were dependent on them was now not really needed. They decided to donate a fully paid-up policy to charity. Their financial advisor told them that as the policy is paid-up, they are entitled to a charitable deduction equal to the lessor of the premiums they paid over the life of the policy or the cost of a comparable replacement policy if purchased today.
The Walker children were very supportive of the idea. In fact, one of their children purchased a small whole life policy and designated the charity as the owner and irrevocable beneficiary. As a result, the annual premiums that are paid are a charitable deduction.
Wealth Replacement Using Life Insurance
Creating a Life Insurance Trust
As with all matters concerning estate planning, please consult your estate and tax specialists. Click here to return to Wills and Bequests.
For more information or a confidential discussion of your charitable options, please email or call the Development Officer, Roxanna Tinsley, at (843) 777-2694.