Gifts of Life Insurance - Paid-Up Policy
How It Works
Questions and Answers
If the dividend account becomes underfunded in the future, will contact you to learn whether you are willing and able to make cash contributions to to cover the premiums as they are due. You will be eligible to claim a charitable income tax deduction for your contributions. Except in extraordinary circumstances, ’s practice is to surrender policies whose premium payments are not covered by donor contributions rather than tap unrestricted funds to do so.
If your policy is paid-up (in other words, no further premium payments are expected to be due and the policy is currently self-funding), you will be eligible to claim a charitable income tax deduction equal to the lesser of your cost basis in the policy and its replacement value. Your life insurance company and tax advisor can help you determine the proper amount you are eligible to claim. [Note: if premium payments continue to be due, you’ll be eligible to claim a deduction equal to the lesser of your cost basis and the so-called “cash value” of the policy.]
A gift of a paid-up policy is irrevocable, and will not be able to give the policy back to you once you’ve made your gift. Thus, it’s important to consider possible future needs before deciding to contribute your policy to .
The professionals at our Department of National Planned Giving, Legacy and Endowments will be happy to discuss your interests, concerns and financial options, and work personally with you and/or your legal and financial advisors to create a plan that meets your needs and supports the Anti-Defamation League Foundation.
For more information, please contact:
Director of National Planned Giving, Legacy and Endowments
Anti-Defamation League Foundation (ADLF)
605 Third Avenue
New York, NY 10158
This information is provided for educational purposes. The Anti-Defamation League Foundation and ADL are not financial, legal or tax advisors. Please contact your advisors regarding your financial, legal or tax needs.