Gifts of Life Insurance Policy

Giving through life insurance policies offers a method to deepen the impact of your generosity, potentially transforming smaller, ongoing premium payments into a substantial future charitable gift. Your gift of life insurance policy can help bring hope and healing to countless lives of individuals and families in Richmond.

If you’re thinking about donating a life insurance policy, there are two options to consider, depending on when you wish to receive your tax receipt:

Option A: Donate the Policy Now

• This is a good choice if you require a tax receipt right away.
• You donate an existing life insurance policy to the Foundation, who becomes the policy owner and you’ll get a tax receipt for the current cash value of the policy.
• You’ll keep paying the insurance premiums and get a tax receipt for all those payments.
• When the policy pays out, the life insurance money goes directly to the Foundation. No donation receipt will be issued to your estate for the payout from the matured policy.

Option B: Keep the Policy, Name the Foundation as Beneficiary

• This option works best if you wish to apply the charitable donation receipt in your estate, after your lifetime.
• You keep ownership of the policy but name the Foundation as the beneficiary.
• If circumstances change, you can choose to change who the beneficiaries are.
• You continue to pay the premiums, but there is no tax receipt for these payments because you still own the policy.
• When the policy pays out, the Foundation will receive the proceeds and issue a tax receipt for that amount to your estate.

We suggest discussing these options with your advisor and insurance specialist to find out what works best for you and understand how it will affect you financially.

[Step-by-step instructions PDF for download]