Gifts of Life Insurance

Your Community as Your Beneficiary

Life insurance provides a simple way for you to give a significant gift to charity and establish your legacy. 

The PineBelt Community Foundation accepts gifts of life insurance as the beneficiary of your policy.  We also may be named as the beneficiary (primary or contingent) on your retirement accounts. 

In addition to providing you with the tax advantages, beneficiary designations are a quick, hassle-free way to make a gift.  Changing your beneficiaries is easy:  you simply contact your insurance carrier or employer/plan administrator and request a beneficiary form.  As with bequests, you have the freedom and flexibility to change your mind and your beneficiaries at any time.

You can make a gift when life insurance is no longer needed for personal financial wealth replacement by either giving a paid-up policy or by continuing to pay premiums. You may receive a number of tax benefits, including reduced estate and income taxes.  If you choose to continue paying premiums through the PineBelt Foundation, you will be entitled to a charitable contribution deduction of up to 50 percent of your adjusted gross income.

Benefits of Giving Life Insurance

  • The amount of your gift is certain – assuring that your desire to support your community is met.
  • The proceeds from a life insurance policy are paid promptly and are not part of the probate process.
  • Life insurance is a “quiet” gift – it is not a matter of public record.
  • Life insurance gifts can be used to replace assets gifted to your community.  Your family can receive the life insurance proceeds free of gift or estate taxes.

 

Ways to Give Life Insurance: 

#1  With an Existing Policy. Do you have a policy that was purchased several years ago but the need for that coverage no longer exists? Instead of cashing in the policy for its cash value, consider contributing the policy for the benefit of your community. By changing the ownership and beneficiary of the policy to The Greater PineBelt Community Foundation for the benefit of your community, you will receive a charitable income tax deduction.  Additionally, if you were to make future annual gifts of the policy’s premium, you would receive an additional charitable income tax deduction each year.

#2  Designating the PineBelt Foundation as a Beneficiary. You can name the PineBelt Community Foundation as primary beneficiary of your life insurance policy or as contingent beneficiary, should your other beneficiaries not survive you.  After your lifetime, the benefits from your policy would pass to the PineBelt Foundation free of federal estate tax.  To establish this type of gift, you simply request a “Change in Beneficiary Designation” from your insurance agent.

#3  With a New Policy.  Through the multiplier effect of life insurance you can make a substantial gift to your community on the installment plan. When you purchase a new policy and name the PineBelt Foundation as the owner and beneficiary for the benefit of your community, the gift you make of the premiums become fully income tax deductible.  Thus, for pennies on the dollar you guarantee that your community will receive a meaningful gift in the future.

If you have questions about outright gifts that have not been answered in this section, please click here for our brochure on Life Insurance

For more information please contact your Professional Advisor or Theresa Erickson, Executive Director at contact@PineBeltFoundation.org or call 601.583.6180