Life insurance can be a valuable gift because it is leveraged, meaning that a small amount of money (premium) produces a large death benefit. Thus, the donor is credited for a much larger amount than the actual donation (premium). In fact, the only way for some donors to make a gift of magnitude is through life insurance.

Benefits to Donating Life Insurance

Gift is almost immediate. Proceeds are paid in cash at death within 30 to 60 days. (Life insurance proceeds are not subject to, or reduced by probate costs).
Gift of an old policy is easily accomplished. A gift of an existing policy can be made by naming EOFULA as the beneficiary.
Gifts are private. Life insurance policies are not public records so privacy is assured.
Gifts are economical. In most cases, the size of the person's gift is substantially larger than the original costs. Moreover, premiums paid are tax deductibles which assist in reducing the cost of purchase.
Gifts are convenient. On an existing policy, changing the beneficiary is a matter of a simple form which is much less complicated than creating a will, a trust, or other forms of giving.
Gifts are flexible. You can formulate a life insurance gift designed in just the amount and type desired.
Tax Benefits from Life Insurance Gifts
State laws govern and regulate issuance and operation of life insurance policies. These laws can affect gift deductibility for federal income tax purposes. The information presented below is in summary form. All donors should consult with and rely exclusively on professional advisory assistance, including your life insurance representative.

If you...

You may deduct...

Give a paid-up policy	Approximate cash surrender value
Give a policy on which you are paying premiums	Approximate cash surrender value and future premiums paid
Purchase a new policy for charity	Premiums (if charity is named owner)
Assign dividends to charity	Value of dividends
Buy a policy to guarantee a pledge to charity	Premiums (if charity is name owner)
Name a charity as first, second, or final beneficiary on policies you own	Premiums are not deductible unless the first beneficiary is irrevocable owner of policy

Your insurance agent can assist in your gift request. To request information or to implement changes in your policy, contact your insurance agent or the life insurance company directly. Refer to your policy number.
To make a charitable gift of life insurance benefits, you will need to complete the necessary forms. Each life insurance company will have different procedures. Here are some of the major changes or additions you could make to your life insurance policy that would benefit the Foundation and allow it to expand its programs and services to benefit the elderly in need.
Assign your policy dividend
Name the charity as either Primary Beneficiary or as Secondary Beneficiary
Irrevocably transfer policy ownership
Purchase a new policy naming the charity as the owner and beneficiary