The use of life insurance for charitable giving is popular among many donors to Presbyterian College. Often times, life insurance is purchased at a young age to provide for your family should you or your spouse die prematurely. As one ages, the need for that life insurance may become less important. The policy can be donated to Presbyterian College. If the policy is paid up, the value of the charitable gift is the cash surrender value of the policy, not the face value of the policy. The owner and beneficiary of the policy would be changed to that of the college. At the death of the insured, the benefit would be payable to Presbyterian College to fund the purpose you identified. A new policy can also be purchased in the name of Presbyterian College. You are named as the insured and you give funds to PC each year to pay the premium. These payments would qualify for a charitable income tax deduction for the year in which the payment was made. At the death of the insured, the death benefit would be payable to Presbyterian College for the purposes you identified.
Benefits to you include:
1. Reduce income tax consequences on terminating a life insurance policy that contains cash value and receive a charitable deduction for the cash surrender value of the policy.
2. Obtain a charitable deduction for the value of the yearly premium payments when made directly to Presbyterian College.
3. You will provide generous support to Presbyterian College.
As with any financial decision, you should consult your CPA, attorney, and other financial advisors.
For more information, please contact:
Ann Casey – Director of Advancement Services
Office: 864.833.8007 | firstname.lastname@example.org