Gifts of Life Insurance

People who desire to give to Young Life have many options on how to give. One of the most effective means to maximize giving is to use the gift of Life Insurance. There are several ways to give life insurance. While there are many different types of life insurance, the principal of giving remains the same: a relatively small present gift will ultimately provide a much larger gift in the future. The following will explain how this works.

  

Gifts of Existing Insurance  

Often times people have a life insurance policy in force which:

  • is no longer needed to provide for the survivors of the person who is insured;
  • will add to the size of someone’s taxable estate without providing any real benefit to survivors;
  • is an old policy and does not provide a good economic return for the owner’s planning purposes.

These policies can be given as a current gift to Young Life. In so doing, the charity would receive:

  • a large gift at the death of the insured;
  • the potential of using the cash value in the policy for current needs, if a policy which has cash value is donated.

In return for giving the policy, the donor receives a:

  • current tax deduction for the amount of the cash value in the policy;
  • reduction in the size of the donors taxable estate (if applicable).