Charitable Life Insurance

  • What is this?
    Usually, the charitable life insurance asset is a permanent life insurance policy (e.g. whole life, universal life, or variable universal life) that the individual has had for a long time and likely a paid-up policy). It could also be a brand-new single-premium policy, for example.
  • Who is it a good option for?
    It is good for someone who has an old policy sitting around that their family does not want or need anymore. Or, it could be for the person who wants to use life insurance to fund their charitable goals. Lastly, it is good for someone who would like to use the tax-free death benefit of life insurance to go to family while potentially taxable assets (like a retirement plan) go to charity.
  • Financial Benefits
    Possibly an income tax deduction on the “interpolated terminal reserve” (e.g. cash value) of the policy, and maybe, if the policy is owned by the charity, a charitable income tax deduction on any life insurance premiums paid.
  • What do interested parties need to prepare for a meeting?
    Bring any old policies being considered for donation (and a recent insurance company statement of value), or maybe any NEW policies that an underwriter/company has accepted the risk for already (e.g. the person is insurable for the amount listed).

Questions? Want to Start a Conversation?

Contact Laura Gillespie today at:
(802) 478-1806

Other Ways to Give

Non-cash gifts allow donors to make a significant impact on their favorite causes, but most nonprofits aren’t equipped to accept goods such as real estate, privately held stock, etc. We make it easy to turn your goods into charitable gifts.