Many people buy life insurance to provide for their young children or to ensure payment of a home mortgage. Now, many years later, the children are grown or the mortgage has been paid off. If you now own more than enough life insurance or if you have a policy that is no longer necessary, please consider making a gift of it to the Hospital.
Giving a life insurance policy is an easy and inexpensive way to make a substantial gift to the Hospital. All you have to do is make us the beneficiary and irrevocably transfer the policy to us. We will eventually use the proceeds to help us expand access to world-class healthcare, build the premier regional medical network of the future and transform lives.
If the policy has a cash surrender value, your income tax charitable deduction is generally slightly above the cash surrender value. Any premiums you pay on the policy after you transfer it to us qualify as an income tax charitable deduction for the year in which you pay the premium.
You can also retain ownership of the policy and simply name the Hospital as the policy’s beneficiary. In that case, you are not entitled to an income tax charitable deduction, but we will eventually receive the proceeds if you don’t change the beneficiary.
Another way to support the Hospital is to name us the contingent beneficiary of your life insurance policy so that we will receive the proceeds if there are no surviving close family members.
Employees can receive group-term life insurance coverage up to $50,000 tax-free. But the value of the premiums paid to provide coverage over that amount, as determined by IRS tables, is generally taxed to them. Under an important exception, however, the value of group-term insurance protection over $50,000 is not taxed when employees name a charity, such as the Hospital, as the beneficiary of the excess. There is no income tax deduction for this gift, but employees can avoid paying income tax on the value of the premiums needed to furnish the excess coverage.
For more information on donating a life insurance policy to the Hospital, please contact us at: email@example.com or call (203) 852-2933. There is no cost or obligation to you.