Gifts
of Insurance
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Life
Insurance
Life Insurance can be a very flexible
tool in estate-based philanthropy. As
with other giving vehicles, you can help Gospel
for Asia while also receiving tax benefits for
you and your heirs. Customarily, you name your
spouse, children, parents, relatives, or friends
as beneficiaries of life insurance. However, it
is also possible to name one or more nonprofit
institutions. This provides you with an opportunity
to make a significant gift with little expenditure.
Perhaps, the easiest way to use
your life insurance to make a gift to Gospel for
Asia is to simply name Gospel for Asia as a beneficiary.
If your policy is paid up you are eligible for
a charitable deduction equal to your cost basis
or the replacement value of the policy, whichever
is less.
If your policy is not paid up,
you can still name Gospel for Asia as owner and
beneficiary. This would entitle you to a deduction
of the cash surrender value of the policy. After
the policy has been gifted, you can make yearly
tax-deductible contributions to cover future premiums.
Gifts of Group Term Life Insurance
If your employer provides group term life
insurance coverage, you
can name Gospel for Asia the beneficiary or co-beneficiary
of that policy. Even if your employer pays the
premiums, under current tax law, you must include
the policy premiums in your annual income to the
extent they are used to purchase more than $50,000
in insurance. By gifting the policy to Gospel
for Asia, you would avoid paying income taxes
otherwise incurred on the premiums above the allowed
exclusion and the value of the policy would be
removed from your estate.
Wealth Replacement
You may also use life insurance to replace
the value of other assets that you wish
to donate to Gospel for Asia. For example, purchasing
a life insurance policy for the value of real
estate donated can help ensure the financial well
being of your heirs.
For more information about using
your life insurance as a way of accomplishing
your philanthropic goals, please contact a PhilanthroCorp
Estate Specialist, call 800-876-7958 ext
2127 or email (click
here)
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on this site is NOT intended for legal advice.
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Planned Giving
