If you purchased a life insurance policy to meet a financial responsibility that has since been met, gifting it may be a means to provide support to your parish, school or diocese while, at the same time, realize an immediate tax deduction. Simply transfer ownership of a paid-up life insurance policy to the charitable organization of choice. The organization may elect to cash in the policy or hold it. You will receive an income tax deduction equal to the cash surrender value of the policy. You might also choose to name a charitable organization as a beneficiary on an existing life insurance policy. This can be handled simply and effectively by completing a beneficiary form obtained from the life insurance company. *Please consult with a tax advisor before making any changes to your life insurance.
