Life insurance is an especially flexible planning tool that can be used to meet a variety of personal financial needs. Did you know that life insurance might also offer a convenient way to fund meaningful charitable gifts as well?
Each method of giving life insurance described here helps meet a different estate or financial planning goal. Consider whether any of these ways to give life insurance may be applicable to your situation.
- Name a charitable recipient as beneficiary of a policy you own in one of the following ways: as a primary beneficiary to receive all or part of the proceeds or as a secondary beneficiary to receive part or all of the proceeds in case one or more of the primary beneficiaries has predeceased you.
- Purchase a new policy to make a substantial gift in an affordable and tax-efficient manner.
- Give a paid-up policy you already own by changing the owner and beneficiary.
- Give a policy on which you are still paying premiums.
- Buy a policy benefiting your heirs to replace money or property you have given.
- If it is more advantageous, purchase a life insurance policy on the life of another person.
- Assign policy dividends to charitable interests.
If you would like additional information on life insurance, please call (717) 242-7365.
State laws govern and regulate the issuance and operation of life insurance policies. These laws can affect the deductibility of gifts for federal income tax purposes. Check with your life insurance representative or other advisers for additional information.