Most of us think of life insurance as protection, especially for our loved ones. But it can also be a powerful, practical, and simple tool you can use to make a charitable gift.
There are two ways to make a gift of life insurance
Making a Gift of Your Policy:
It is possible to contribute a policy of whole life insurance to the station. This can be a fully paid policy that you have owned for many years or a new policy. If you choose to contribute a new policy, you can make a one-time payment to fund the policy or make annual premium payments.
When the policy is pre-paid, your annual premiums are tax-deductible contributions to the station. In order for the gift to be completed, we must be both the owner and the beneficiary of the policy. Upon the donor’s death, the death benefit value of the policy comes to the station.
Making the Charity a Beneficiary of Your Life Insurance Policy:
When a donor names the station as beneficiary of a life insurance policy without transferring ownership of the policy, there are no current tax benefits to the donor; however, there is a 100 percent estate tax deduction for the death benefit amount.
Contact your insurance company for its change of beneficiary form and decide what percentage of the policy you would like to designate as a charitable gift to WFIU.