Charitable Life Insurance
A Charitable Life Insurance Policy is a creative method of supporting a donor’s favorite Diocese of Raleigh ministry under the management of The Foundation of the Diocese of Raleigh. Through the use of an existing paid-up policy or through the creation of a new cash value policy, a donor can significantly impact the people who benefit from their favorite ministry through a major level gift.
Often individuals discover old, paid-up life insurance policies as they clean their house. These long-forgotten policies may contain named beneficiaries who have long since passed to their eternal home. These policies can be gifted to a favorite charity by simply signing a new insurance company form and naming the charity as the new owner/beneficiary.
In other cases, generous donors like to leverage their charitable gifts by creating a new cash value policy. They may pay a smaller one time or multi-year premium payment (EG, $1,000) in order to secure a larger paid up policy amount in the name of the charity (EG. $100,000). Upon the passing of the donor the charity that was named owner and beneficiary receives the full-face value of the insurance policy.
- The donor can immediately receive a charitable tax deduction in the amount of the face value of the policy while the donor’s favorite diocesan ministry can count on a future gift of significant value.
- For new policies, the donor can make a one-time, tax deductible payment in purchasing an insurance policy at a much higher value in the name of The Foundation for their favorite charity.
- If the donor prefers, a multi-year premium payment schedule can be arranged. The annual premium payments up to a ten-year period are made payable to The Foundation which in turn pays the insurance premium. Once the policy is paid up, The Foundation records the donation on behalf of the donor and the donor’s designated charity.
- Upon the donor’s future passing, the insurance company remits a check to The Foundation which in turn, is sent to the charitable ministry or invested in an endowment fund per the ministry’s instruction.