Perhaps one of the most financially efficient ways to make a deferred gift to The Lighthouse is through a gift of life insurance.  Life insurance can become a gift of tremendous greater value than the actual money expended when the policy is given to The Lighthouse.

There are several ways to consider making a gift of this asset.  A few are:

A Revocable Gift of Life Insurance to the Lighthouse

If the life insurance coverage is not needed by your family, then you can name The Lighthouse as beneficiary of your policy.  Of course, you have the right to change the beneficiary at any time before you die. 

If The Lighthouse remains the beneficiary when you die, your estate will receive an estate tax deduction for the life insurance proceeds.  There will not be an income tax deduction, because the gift was not completed during your lifetime.

An Irrevocable Gift of Life Insurance to the Lighthouse

Gift of a “Paid Up” Policy

First, if you have a life insurance policy that does not require additional payments (a “paid up” policy), you may wish to donate it to The Lighthouse.

By irrevocably assigning ownership of a policy to The Lighthouse, you have made a completed charitable gift.  By making The Lighthouse the owner and the beneficiary of the policy, you are entitled to take an income tax charitable deduction equal to the lesser of the replacement value of policy and your cost basis in the policy.

Second, you can also give to The Lighthouse a life insurance policy that requires regular premium payments.  In return, you will receive an income tax charitable deduction for the gift after The Lighthouse becomes the owner and the beneficiary of the policy.  In addition, if you continue to pay the premiums after the policy is owned by The Lighthouse, your premium payments will also qualify as additional charitable gifts. 

Once you make the gift of the life insurance to The Lighthouse, you can either directly pay the premium payments on the policy.  Or, you can make gifts each year to The Lighthouse in the amount of the premiums, and we will pay them.

To learn even more about giving gifts of life insurance to The Lighthouse and how to do so, please contact Jennifer E. Miller, Director of Development at (312) 997-3643