Life Insurance
Amplify your impact with a gift of life insurance.
A life insurance policy is an excellent way to make a significant gift to Children's Medical Center Foundation. If you have a policy that has outlasted its original purpose, or want to make a large gift without affecting your cash flow, you can use your policy to make life better for children.
Benefits of gifts of life insurance
There are several benefits to making a gift of life insurance, depending on your needs and goals:
If you have a policy that no longer serves its original intent, you can include Children’s Medical Center Foundation as a beneficiary or transfer ownership.
You may receive a charitable income tax deduction or lower your estate tax liability.
The proceeds of your policy will be paid to Children's Medical Center Foundation at the termination of the policy.
Your gift will be recognized for the full insured amount of the policy.
There is an option for Children’s Medical Center Foundation to surrender the policy for its current cash value to make an immediate impact.
How to make a gift of life insurance
There are three common ways to make a gift of life insurance:
Include Children’s Medical Center Foundation as a beneficiary You may contact your life insurance provider, request a “beneficiary designation form” from the insurer and include Children's Medical Center Foundation as the beneficiary of your policy.
Transfer ownership of your policy to Children’s Medical Center Foundation You may submit a "change of ownership" form to your insurance company. If premium payments are still necessary, you can make an annual tax-deductible gift to Children’s Medical Center Foundation and we use it to pay the premium.
Obtain a new life insurance policy You may create a new policy with the help of an insurance advisor, designating Children’s Medical Center Foundation as both the policy owner and beneficiary. The premiums are typically paid over a limited period, with the donor gifting the annual premium amount for tax benefits.
Our team is here to help.
If you have any questions about gifting a life insurance policy, please reach out to the Legacy and Gift Planning team at 
giftplanning@childrens.com.
Important Considerations
Before pursuing this giving method, donors should be aware of the following:
Ownership transfer vs. beneficiary designation: Transferring ownership of a life insurance policy to Children's Medical Center Foundation may generate an immediate income tax deduction; simply naming the Foundation as a beneficiary does not.
Premium obligations continue: If you transfer a policy with ongoing premium payments, you will need to continue making payments or gift annual amounts to the Foundation to cover premiums. Failure to do so may lapse the policy.
Beneficiary designations are revocable: Simply naming Children's Medical Center Foundation as a beneficiary on an existing policy does not constitute a current gift and can be changed at any time. It does not generate a current income tax deduction.
Coordinate with your estate plan: Life insurance with a charitable beneficiary can be a powerful estate planning tool. Consult your tax advisor.
This information is not intended as tax, legal, or financial advice. Consult your personal financial advisor for information specific to your situation.
Key Rules and Guidelines
The following IRS rules, limits, and requirements apply to this giving method:
Deductibility of ownership transfers: When a donor transfers ownership of a paid-up life insurance policy to a qualified charity, the deduction is generally the policy's fair market value, subject to AGI limits. Consult your tax advisor for details.
No deduction for beneficiary designation only: Naming a charity as a beneficiary — without transferring ownership — does not result in a current income tax deduction. The charitable estate deduction may apply at death.
Ongoing premium deductibility: Annual cash gifts made to the Foundation to cover premiums on a transferred policy may be deductible as charitable contributions in the year made, subject to standard AGI limits.
Estate tax deduction at death: Proceeds of a life insurance policy payable to a qualified charity are deductible from the taxable estate, potentially reducing or eliminating estate tax on those amounts.
Rules and limits referenced above reflect current law. Tax law is subject to change. Please consult a qualified tax or legal professional for advice specific to your situation.
Interested in learning more?
Reach out to our Legacy & Gift Planning team today to learn about ways to make a tax-smart gift.
Let us know
If you have been so generous as to already include Children’s Medical Center Foundation in your plans, please complete our recognition form to join our Bradford Society.
