Gifts of Life Insurance: Getting Started
How You Benefit Copyright © The Stelter Company, All rights reserved. The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.
How It Works
When you own a life insurance policy with accumulated cash value, you're essentially sitting on a pile of money. When the original purpose for the protection no longer applies—such as to educate children now grown or to provide financial security for a spouse now deceased—your life insurance can be redirected to help support a worthwhile cause. One option is simply to name The Foundations of Hawai'i Pacific Health as the primary beneficiary. (Naming us as beneficiary while you retain ownership of the policy, however, does not qualify you for an income tax deduction.) Or, you can name us as the beneficiary and also assign us ownership of the policy as a current charitable gift. Doing so provides you tax benefits as outlined below.
When you assign us ownership of a life insurance policy and also name us as the beneficiary, the following good things happen:
Did you know?
If you are concerned that supporting our work will reduce your family's inheritance, a new life insurance policy equal to your charitable gift can replace the value of your loved ones' inheritance.
Donating a New Policy
Perhaps you don't own an existing policy but still realize how beneficial giving life insurance can be. If so, you can—in most states—purchase a new insurance policy and name a qualified charity like ours as the beneficiary and owner of the policy. Rather than paying premiums to the insurance company, you make tax-deductible cash gifts to cover the annual premiums. Even greater leverage is possible when two donors, usually spouses, purchase a two-life second-to-die policy. With two lifetimes before the payment of death benefits, a future gift to us will cost you even less.
Download a free guide to learn more about the benefits of giving life insurance.
Please contact Jeff Pederson at 808-535-7134 or jeff.pederson@kapiolani.org if we can answer any questions you have about this way to support our work.
Getting Started | Is This Gift Right for You? | Case Study | But What About the Kids? | How to Complete Your Gift | Action Items
Jeff Pederson
Director of Planned Giving
Phone: 808-535-7134
Fax: 808-535-7111
E-mail: jeff.pederson@kapiolani.org
