Gifts of Life Insurance
Life Insurance: Your Key to Contributions of Surprising Significance
Your life insurance is a remarkable asset, more valuable than you may have imagined.
Consider the possibilities:
What begins as life insurance can evolve into a fund for retirement, as a paid-up annuity or cash for reinvestment.
You can borrow against your insurance policies, often at low rates of interest.
Life insurance can play a vital role in a business buyout arrangement or deferred compensation plan, or even as security for a loan.
Life insurance grows in value tax-free, and your beneficiaries generally will receive the proceeds of your life insurance free of income tax.
Life insurance can provide " Liquidity" - a source of ready cash that will be available to your executor to pay your estate's debts, settlement cost, and taxes.
Why Give Life Insurance?
Many donors have found life insurance the ideal vehicle for making a significant charitable gift, either during life or at death. Consider the full advantages:
A gift of life insurance is certain. The full proceeds are payable to assure your charitable wishes are achieved.
Life insurance is paid promptly; it does not tied up in the administration of the estate.
Unlike a will, life insurance is not a matter of public record. Proceeds can pass to the beneficiary in privacy if you desire. The Foundation would be pleased of course, to provide public recognition of your generosity.
Life insurance gifts are simple. Just ask the insurance company for the appropriate forms to make the Foundation the owner or beneficiary of a policy for the benefit of any charity or charitable purpose you choose.
Gifts of a policy are tax-deductible, as are future premium payments.
How to Give Life Insurance
To make a gift of life insurance, donors assign all incidents of ownership in the life insurance policy to the Foundation, using the correct corporate title. The assignment of both beneficiary interest in and the ownership of life insurance policies should be made to:
To receive income tax considerations, the Foundation must be both the irrevocable beneficiary and the owner of the policy. The policy will be physically retained by the Foundation. Policies may be deliverable to the Foundation office in person or by mail, or handled through your insurance agent.
For policies assigned irrevocably to the Foundation, the insurance premium amounts paid directly to the Foundation, who pays the premium to the insurance company. The Foundation then credits your gift record with the premium amount, which is deductible for federal income tax.
Beneficiary (charity or charitable purpose of your choice)
c/0 Parke County Community Foundation