Life Insurance

There are two beneficial and easy ways that your clients can use life insurance to fund their giving.  If they have a paid-up (or cash value) life insurance policy that is no longer needed for its intended purpose (e.g., their children are grown, a spouse has predeceased, or tax laws have changed), clients can give the policy to the Foundation. The policy will be cashed in, and the proceeds can be used immediately to create any type of fund.  Life insurance can also be made part of their estate planning by naming the Foundation as a partial and/or contingent beneficiary of an insurance policy's death benefit.  If one or more of the primary beneficiaries predecease the donor, their share can go directly into a fund established at the Foundation.

HIGHLIGHTS:

  • When your client makes an immediate gift of an insurance policy, they may claim an income tax deduction based on the policy's current value. The Foundation can cash in the policy and place proceeds directly into the established fund.   The policy's assets may also be placed into a charitable remainder trust.
  • Estate taxes are reduced since the value of the policy is removed from your client's estate.
  • Naming the Foundation as the beneficiary or contingent beneficiary of a life insurance policy enables your client to protect loved ones while providing for the causes they care about, even if the policy's beneficiaries predecease the donor.
  • An unneeded asset is removed from their estate, without affecting client income.
 
 


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