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A life insurance policy can become a gift of much greater value than the actual money expended when the policy is given to the Foundation, which is named as the beneficiary. The donor either can pay up the entire policy or make annual contributions to the Foundation for the cost of the premiums. This is a tax-deductable gift.
General Considerations:
In most cases, current tax advantages are available only when ownership and beneficial interest in the policy is irrevocably transferred to the Foundation.
Whole and universal life insurance policies may accrue cash value and are usually assignable.
Term life insurance policies (e.g., a group term life policy provided by an employer) may not be assignable. However, a donor (insured) may still be able to designate the Foundation as a beneficiary.
How to send gifts:
Request forms to transfer ownership or to name the Foundation as beneficiary (depending on gift type) from the issuing company or agent. Return completed forms to insurance company for processing.
Foundation staff will work with the insurance company to complete the transfer, if necessary.
Information needed. When policy ownership is transferred to the Foundation, the following is required:
  Donor's/insured's name and their relationship
Policy's face value
Premium payment information
Current cash value of policy
Policy number
Name of insurance company
Original policy documents
To name the Foundation as beneficiary: Obtain the necessary documents from insurance company or agent and send to the Foundation.
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