How does it work?
You may transfer a fully-paid existing insurance policy to the organization and name them as the policy’s irrevocable owner and beneficiary. The organization is assured of a guaranteed sum in cash at the end of your life, to be used for purposes that you specify. You may receive a tax deduction for the value of the policy at the time of the contribution of the policy to the organization.
You may also purchase a life insurance policy and name the organization as the irrevocable owner and beneficiary. You make the annual premium payments for a limited number of years, for which you may also receive a charitable income tax deduction. At your death, the insurance policy’s benefits go to the organization as you specify and thereby fulfill your legacy gift.
What are the benefits
A change in the beneficiary designation of an existing policy will allow you to make a legacy gift without any additional cost.
A gift of an existing policy could provide the policy owner with an additional charitable deduction.