Life insurance is a planning tool flexible enough to meet a variety of personal financial needs. Making a charitable gift of a life insurance policy that provides coverage in a way no longer necessary or relevant to your needs is a convenient way to fulfill philanthropic goals.
There are seven ways to give using your life insurance plan:
1. Name a charitable recipient as:
- primary beneficiary: to receive part or all of the policy proceeds;
- secondary beneficiary: to receive part or all of the policy proceeds in a case where the primary beneficiary has predeceased you;
- final beneficiary: to receive part or all of the policy proceeds if all other beneficiaries have predeceased you.
2. Purchase a new policy to make a substantial, tax-efficient gift.
3. Give a current, paid-to-date policy by changing the owner and beneficiary.
4. Give a policy that you’re not yet paying premiums on.
5. Puchase a policy that will benefit your heirs, to replace a gift of cash or property.
6. Purchase a policy on the life of another person if you don’t qualify personally.
7. Assign dividends from a policy to a charitable interest.
Your plan administrator may require the following information: the Homesteading Assistance (U-hab), Inc. is a "public foundation," incorporated in the State of New York on November 30, 1978, and is classified as tax-exempt under Internal Revenue Code 501(c)3. The tax identification number for the Urban Homesteading Assistance Board is 13-2902798.
Before making a donation to the Urban Homesteading Assistance Board, we recommend that you consult your advisor or attorney for full advice on the effect of your gift.