Southwest Autism Research & Resource Center

Change Lives With Life Insurance

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Gifts of Life Insurance 3 Ways to Turn Your Policy Into Support Have your circumstances changed since then? If so, you might be interested in one of the most satisfying uses for life insurance you no longer need—donating it to a charitable cause such as ours. Here are three ways to arrange this gift. 1] Give an Existing Policy When you choose to name SARRC as the policy owner and beneficiary, you receive an immediate federal income tax charitable deduction for the lower of the policy's fair market value or your cost basis. For paid-up insurance, the fair market value is the cost of replacing the coverage with a comparable policy. If premiums are still payable on the policy, the fair market value is usually close to the cash surrender value. You may stipulate to us that you wish to no longer make future premium payments, allowing us to access the surrender value immediately for our cash needs. An alternative, however, may be even more attractive. The policy can remain ours and will stay in force so that someday we receive the original face amount. You pledge to make yearly cash gifts, which we will use to pay the premiums. The gifts are deductible, and the policy is thereby kept in force with pretax instead of after-tax dollars for a lower actual cost. Life insurance can be a tool with many purposes. When your children were young, for example, you may have purchased policies to provide them with financial protection in case something should happen to you or your spouse. beneficiary: an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan fair market value: the price a willing buyer and a willing seller can agree on cost basis: the original value of an asset, before its appreciation or depreciation revocable: able to be changed or canceled When you donate a life insurance policy to SARRC during your lifetime, you receive an immediate federal income tax charitable deduction.

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