As you think about financial resources you may have available to make a philanthropic gift, one set of assets that may not come to mind quickly — if at all — is the life insurance policies you may have collected over the years. Yet, a life insurance policy can be an ideal asset to fund the special gift you've wanted to make for a while now.
In fact, whether you have several life-insurance policies or just one, once you determine that the need you once had for life insurance has passed, a philanthropic gift can be the best way to put such an asset to good use.
If you have a paid-up whole or universal life policy, you can make a gift of the policy to your alma mater or other charitable organization — and, both the accumulated cash value and the ultimate death benefit can be earmarked by you to fund a generous gift.
And, it's easy to do. Your insurance representative can provide you with the forms you'll need to name your alma mater or other charity as the beneficiary and owner of the policy. Once the paperwork is completed, you would have made a thoughtful gift using an asset that you no longer need.
Even policies for which you are still making annual premium payments can be used - and, when you name your alma mater or other charity as the beneficiary and owner of such a life insurance policy, you're able to make an annual charitable gift for the amount of the premium payment — and then, your alma mater (or other charity) will use each annual gift to keep the premiums paid. Turning a premium payment into a charitable gift is an extra advantage of such a gift of life insurance.
Any questions about ways to devise creative charitable gift plans using existing or new life insurance policies, post your question and we'll talk about it here.
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