Do you currently have a life insurance policy you no longer need? Changes in your life or your family's life can affect the need for insurance. Perhaps you have a policy on your life that was intended to protect a spouse who will no longer need it, a child who is now a financially independent adult, or to complete payment of a mortgage already paid in full. Perhaps you have a policy to provide retirement income and you have since begun contributing to an Individual Retirement Account (IRA). Perhaps a policy to protect a business that no longer exists or no longer needs the protection, or a small policy your parents purchased when you were a child.
Many of us experience these life cycle changes, but forget to address the insurance coverage we may no longer need. Consider how changing the ownership and/or beneficiaries of those policies may help the children at Boys and Girls Homes.
You can name Boys and Girls Homes as beneficiary of a policy in several different ways.
- As primary beneficiary to receive part or all of the proceeds;
- As secondary beneficiary to receive part or all of the proceeds in case the primary beneficiary has predeceased you;
- As final beneficiary to receive part or all of the proceeds if all other beneficiaries have predeceased you.
You can give a paid-up policy you already own by changing the owner and beneficiary. You may be able to deduct an amount equal to the approximate cash value of the policy.
You can give a policy on which you are still paying premiums. If Boys and Girls Homes is named irrevocable owner and beneficiary, you may be able to deduct each future premium payment as a charitable gift.
You can purchase a new policy for the benefit of Boys and Girls Homes. You would pay the premiums regularly out of your income in order to guarantee a larger sum later to Boys and Girls Homes. You may be able to deduct the amount of your premiums on your income tax return.
Gifts of life insurance add flexibility to many donors as they begin to explore estate planning opportunities. Life insurance is generally easy to set up, is convenient, is flexible and is immediate. Gifts of life insurance are paid in cash immediately at death and generally are not subject to the costs or delays of the probate process.