Gifts of Life Insurance

Life Insurance Gifts work as follows:

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Jim had a life insurance policy that was purchased to cover his son's college education if Jim were to die prematurely. His son graduated from college 15 years ago and the policy is no longer needed. Jim has many charitable donation options:

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For a policy that is not paid up, the charitable deduction is generally slightly higher than the policy's cash surrender value.

If the policy is paid up, the deduction is limited to the present cost of a comparable policy if you were to buy one now.

If you make annual premium payments on a donated policy, the premiums are deductible.

If you donate a term life insurance policy, you can deduct the premium payments.

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Gifts of life insurance policies are easy to make and often generate charitable tax deductions. In addition, they usually do not disturb other assets or cause a loss of income. If you have any additional questions, please contact your financial advisor or insurance agent.