Life insurance policies are usually purchased to provide financial security for loved ones, but many people are surprised to learn that life insurance can also provide a wonderful way for an individual to carry out his or her charitable intentions. Using life insurance to make a charitable gift allows a donor to make a larger and more lasting gift than would otherwise be possible. There are several ways to use life insurance to make a gift.
An individual can name a charity as the beneficiary of an existing or new life insurance policy. This provides a benefit to the charity but offers no tax advantages to the donor.
An individual can transfer the ownership of a new life insurance policy to a charity. In this case the donor will be entitled to a charitable tax deduction for the amount of the premiums.
An individual can transfer the ownership of an existing life insurance policy to a charity. In this case the donor will receive tax advantages based on the value of the policy.
To learn more about the Life Insurance gifts,