More about Gifts of Life Insurance
Gifts of life insurance offer you an opportunity to contribute to Woodland Healthcare Foundation more than you ever thought possible. Supporters often overlook and underestimate the benefits of giving a life insurance policy to the Foundation.
If you are carrying more insurance coverage than your family obligations now require, you may find a hidden gift asset in a paid-up policy. Alternately, you could create a significant gift by taking out a new policy on your life and naming Woodland Healthcare Foundation as the owner and beneficiary, thus creating a future gift at a lower cost. If the Foundation is both the owner and beneficiary, the premium payments are tax deductible.
You must name Woodland Healthcare Foundation as the irrevocable (you can't change the terms in the future) owner and beneficiary of the insurance policy to secure income-tax benefits from your gift. A gift of a paid-up policy produces a charitable deduction in the amount of the policy's cash surrender value or basis, whichever is less.
Note: If you borrowed against a life insurance policy, a subsequent gift of the policy will create taxable income for you – the difference between the loan balance and the fair market value of the policy.
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