Life insurance can be a convenient way to make a substantial gift to the Indiana Bar Foundation for a relatively modest annual cost. You can use a pre-paid policy you no longer need or purchase a new policy to make your gift. Below are examples of charitable gift-giving opportunities using life insurance.
The Foundation as beneficiary
You can name the Foundation as a beneficiary of a life insurance policy while retaining ownership of the policy and access to the cash value. However, because you retain ownership and can change the beneficiary, no income tax charitable deduction is allowed for the value of the policy.
Survivorship Life Insurance
Also known as “second-to-die insurance,” the lives of two people are covered under this form of insurance. When the second insured dies, the policy’s benefits can be payable directly to the Foundation. This form of life insurance is less expensive than others, enabling you to make a larger charitable gift than you might otherwise consider.
The Foundation as owner
If you desire immediate tax benefits, you can assign an insurance policy to the Foundation. This allows you to take a federal income-tax charitable deduction for the policy’s fair-market value or the net premiums paid, whichever is less. Also allowed are income tax deductions for contributions that enable the charity to pay subsequent premiums.
If you have any questions or need additional information, please call the Foundation's executive director or development director (317-269-2415) or contact us online.
We recommend that you consult with your attorney or tax advisor for the various tax benefits and restrictions that may apply to your specific situation. We are available to you and your advisors to answer questions or help arrange a planned gift to the Foundation. The Foundation’s future programs depend on the partnerships we form today.