A life insurance policy may allow you to leave a legacy gift to Hadassah far in excess of what you may have thought possible. Here are some ways that you can turn your policy into charitable support for Hadassah:
- You may have taken out a policy years ago to provide for your family in case something happened to you or your spouse, but the original purpose for your policy no longer applies. This policy may be a “hidden asset” that you can use to support Hadassah.
If you transfer ownership of the policy to Hadassah and name Hadassah as the beneficiary, you may receive an immediate income tax charitable deduction and may reduce your future estate tax liability. If the policy is in premium-paying mode, you may receive additional tax benefits when you make annual gifts to Hadassah to cover the premium payments. Hadassah could choose to surrender the policy for the cash value immediately or wait until the policy matures to receive the death benefits. - If you would like to make a future gift to Hadassah while retaining ownership of your existing life insurance policy, you can name Hadassah as the beneficiary of all or part of the benefits and keep the right to change the beneficiary designation. This type of gift gives you the opportunity to make a significant future gift to Hadassah and the flexibility to change your mind at any time.
- In most states, you can purchase a new insurance policy and name a qualified charity like Hadassah as the owner and beneficiary of the policy. You would make annual cash gifts to Hadassah to cover the premiums and may be eligible to receive an income tax deduction for these donations. Another option is to purchase a two-life, second-to-die policy that would provide benefits to Hadassah only after the last surviving person on the policy dies. Because this type of policy is more affordable, you and your partner or spouse can make a significant future gift to Hadassah at a substantially lower cost.
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Learn more about this gift by downloading your FREE copy of our informative guide Life Insurance: A Gift for Hadassah’s Future.
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