Life Insurance Can Make an Ideal Gift

Life insurance, in addition to providing family protection and peace of mind, can offer a multitude of other benefits – including significant support for worthwhile organizations. Here are a few ways life insurance can be used to make satisfying gifts.

Gift of a “surplus” policy – Suppose that your family is grown and there is no longer a real necessity for retaining a $50,000 policy purchased many years ago. If you make us the owner and beneficiary of the policy and continue to pay the premiums, you will be entitled to an income tax charitable deduction for roughly the cash surrender value of the policy, and in future years you will be entitled to deduct the annual premiums you pay. At your death, the full $50,000 proceeds will benefit our programs.

Name us as beneficiary – You can keep lifetime ownership rights in a policy (the right to borrow against or cash in a life insurance policy, for example) and still name us as a beneficiary. We can receive part or all of the policy and your estate will be entitled to an estate tax charitable deduction.

Gifts on the installment plan – You can purchase a new policy on your life, naming us as the owner and beneficiary. Your annual premiums will be fully deductible as charitable gifts and in some cases can be paid up after five or seven years. Life insurance, consequently, allows you to make a substantial gift at a very affordable cost.


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Copyright © 2007 by R&R Newkirk. All rights reserved.

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