Gifts of Life Insurance
Many times life insurance was purchased early in the life of an individual to provide extra funds to their family in the event of their unexpected death. Some life insurance policies expire after a certain time period, however, others are paid up in full and are effective until the death of the insured. These policies which are paid up in full (or nearly paid up) are an excellent way to make a charitable gift that will mature upon the insured's death.
Benefits of making a gift of a life insurance policy:
- There is no out of pocket expense to the donor of gifting the life insurance policy to Open Doors
- The gift of a life insurance policy serves as a legacy gift to Open Doors – helping our ministry to the persecuted extend into the future
- The donor has the joy of knowing that a wonderful gift will be made to Open Doors upon their death
- The donor may be able to receive a charitable deduction for a portion of the value of the life insurance policy
How to make a gift of life insurance:
First, contact the life insurance company or agent and verify that the policy:
- Is still in force
- Whether it is paid up in full
- Whether the policy has cash value built up, and if so, how much
- What type of policy it is (i.e. – term, permanent, universal life, etc.)
- Whether the policy will expire after a term of years or at the death of the insured
- Verify what would be necessary to gift the policy to Open Doors
If you have any questions about gifting life insurance policies, please feel free to contact us. We would be happy to answer questions that you have.
Please let us know if you have already named us as a beneficiary of your life insurance policy. We would like to thank you and recognize you for your gift.
You can also designate Open Doors USA as a partial, full or contingent beneficiary of your life insurance policy. You will continue to own and can make use of the policy during your lifetime. Your estate may benefit from an estate tax charitable deduction.
Your deduction for the gift of life insurance will depend on whether the policy has increased in value above the premiums and whether the policy is paid up or there are remaining payments to be made.