Gifts of life insurance are attractive to many people.  These gifts are popular where policies were originally purchased for protection of minor children, protection of a spouse or payment of loans or estate taxes,  and circumstances have changed so that the policies are no longer needed for those purposes.

One popular method of giving is simply naming “The Foundation for Evangelism, Lake Junaluska, North Carolina” (be sure to use the full name) as a beneficiary of one or more policies. This type of gift is generally revocable and does not qualify for an income tax deduction.  However, that portion of the policy that is left to The Foundation does qualify for an estate tax deduction.  If an income tax deduction is desired, you may consider naming “The Foundation for Evangelism, Lake Junaluska, North Carolina” as the irrevocable owner and beneficiary of a life insurance policy.  

An income tax deduction is generally available for the replacement value of a fully paid up policy or the net premiums paid, whichever is less.  Gifts of new or non-paid up policies offer an income tax deduction approximately equal to the cash surrender value, if any.  If you make future premium payments, there may also be income tax deductions available for those payments if The Foundation has an insurable interest under applicable state law.

A source of life insurance gifts that is often overlooked is group insurance furnished to you as part of employment, retirement or association benefits.  Designating “The Foundation for Evangelism, Lake Junaluska, North Carolina” as the beneficiary of such a policy is an inexpensive way to make a significant gift.