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.