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Gifts of Life Insurance - New Policy: The Details

Donate a policy, take a deduction, deduct future premium payments, if any, and make an extraordinary gift. You’ll also get the proceeds out of your taxable estate.

Is this gift right for you?

A gift of life insurance is for you if…

  • You are a younger donor who wants to make a significant gift.
  • Your estate probably won't have substantial assets to distribute to non-family members.
  • You can make a commitment to provide gifts that will offset our premium payments on the policy.

Your financial projections may indicate that you won't accumulate large blocks of capital during your lifetime, or that your family will have first call on your estate. You want to make a significant gift to the THE ASSOCIATED, but wonder if you'll find the resources to do so.

Life insurance uses manageable payments made from income — the premiums — to create a large future gift for THE ASSOCIATED.  You can build our long-term financial strength without diminishing your own.

Make the gift by taking out a new policy on your life, naming THE ASSOCIATED the irrevocable owner as well as beneficiary (this arrangement makes the gift complete in the eyes of the IRS.)  We will receive the premium notices, and you will make annual donations to offset our payments.  These gifts will, of course, be tax-deductible.  There is no deduction for setting up the policy itself.

Besides creating a new life insurance policy, you can also donate an existing policy.  This gift will generate an initial tax deduction: the lesser of the policy's fair market value — we can guide you in determining this — or the total of your net premium payments.  If premiums are still payable, we will ask you to make tax-deductible contributions offsetting our payment of those premiums.  We do reserve the right to keep such a policy in force during your lifetime, or to terminate it sooner for its cash-surrender value.

Please contact us so that we can assist you through every step of the process.

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THE ASSOCIATED
101 W. Mt. Royal Avenue
Baltimore MD 21201
410-369-9228 | Fax: 410-837-1342
Email: mfriedman@associated.org