How to donate life insurance to charity

Posted on January 21, 2009 under ,

Donate life insurance to charity

Firstly – life insurance is a wonderful tool for charitable giving, and there are often tax benefits for donors as well.

Below are examples of ways to structure a gift of life insurance:

A policyholder may:

  • donate an existing fully paid life insurance policy
  • name their favorite foundation or charity as the beneficiary of a policy
  • purchase new life insurance and name the charitable organization as a beneficiary
  • settle the policy and donate the proceeds

Each has unique deduction and estate taxation implications – so make sure to check with your tax and/or legal advisors.

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