Gifts of Life Insurance - New Policy
How It Works
- You can provide now for a future gift to Exeter by naming us owner and beneficiary of a life insurance policy.
- You make annual gifts to Exeter in the amount of the premium payments.
- When the policy matures the proceeds are paid to Exeter, and we apply them to the program you have designated.
- You can make a significant gift from income instead of capital.
- Your gifts offsetting our premium payments are fully deductible.
- You build our future financial strength.
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Please contact us so that we can assist you through every step of the process.
Questions and Answers
Probably not. Although the face value of the policy is larger than any cash value within the policy, Exeter likely will surrender any policy that goes into default for nonpayment of premiums rather than apply non-budgeted unrestricted funds to cover the premiums due. Exeter will apply the proceeds from surrender to the purposes youíve designated.
Exeter will gratefully accept any insurance policy, and all policies can provide important support for our mission. Keep in mind, however, that while premiums for term policies are a fraction of those required for whole life policies, term policies never build up internal cash value. This means that if you stop making gifts to cover the premium payments, or if the term policy expires naturally, Exeter will not benefit from the policy or your many premium payments.
If you have just purchased a new whole life policy, it is unlikely that the policy will have any internal value at the time you contribute it to Exeter. That means that the policy will not have a current value on which to base a charitable deduction. If you have already made initial premium payments, however, there may be a value on which a deduction can be based. Your life insurance company and accountant can help you determine whether the policy has a value that will allow you to claim a tax deduction. There is no deduction for a contribution of a term policy.
A gift of a new policy is irrevocable, and Exeter will not be able to give the policy back to you once youíve made your gift. Thus, itís important to consider possible future needs before deciding to contribute your policy to Exeter.