Giving Back with life insurance

Other than a Charitable Bequest (by your will if you have one) -

Through a gift of life insurance, you can make a substantial future gift to a charity at an affordable cost.

How It Works:

There are several ways to make a gift of life insurance:

* If you have a life insurance policy you no longer need, you can contribute it to a charity by naming the charity as the policy owner and beneficiary.  You receive an immediate charitable income tax deduction equal to the cash value of the policy.  If you choose to give the charity money to pay future premium payments, those cash donations are also eligible for a charitable income tax deduction.  At death, the life insurance proceeds are not included in your estate for federal estate tax purposes.

* Alternatively, you can purchase a new insurance policy on your life, name the charity as owner and beneficiary, and arrange to make cash donations to the charity for premium payment purposes.  Those cash donations to the charity for premium payments are then deductible on your income tax return.  At death, the life insurance proceeds are not included in your estate for federal estate tax purposes.

* Finally, you can simply name a charity the beneficiary of a life insurance policy you continue to own.  In this instance, there is no charitable income tax deduction available, but the proceeds of the policy at your death will not be included in your estate for federal

estate tax purposes

Everyone should make a will or living trust, regardless of wealth.  Having a plan in place ensures that your wishes are known and saves your  loved ones the stress and cost of intestate probate proceedings.   Create a free will or trust to support the people and causes you care about most even after you’re gone.