Winter 2008

Do you have a life insurance policy you purchased years ago to provide financial protection for your spouse and young children?  Do you no longer really need it?  If so, it may be a great asset to give to the Seattle Lighthouse for the Blind Foundation.  Consider the benefits when you irrevocably name the Lighthouse as both the owner and beneficiary of the policy:

You receive an income tax deduction

When you fill out your itemized tax return, you can claim a charitable deduction for the cost basis of the policy or an amount approximately equal to the cash surrender value.  For deduction purposes, the gift is treated as though it were cash.  And if you can’t use the full deduction in the first year, you can carry forward the unused portion up to five additional years.

You reduce the size of your estate

At death, the face value of most life insurance policies is included in the estate of the deceased.  For some estates, this can mean a significant increase in estate taxes.  However, transferring the policy during life will remove this “hidden” asset and reduce the size of your estate and any applicable taxes.

You leave your current income undisturbed

Many people desire to give more to the Lighthouse, but are concerned about their own cash flow and any unforeseen emergencies.  They are reluctant to reduce investment assets.  We at the Lighthouse do not want any of our friends to jeopardize their security in making charitable gifts.  At the same time, it’s quite possible that you have either forgotten about an “obsolete” life insurance policy or consider it an unneeded asset.  In any case, the beauty of giving such a policy is that it doesn’t affect your current income stream.

Easy to do

Making a gift of life insurance is easier than you might think.  Your life insurance professional can help you obtain a transfer form from the insurance company or you can contact the company directly.  Our Major and Planned Gifts Manager Jennifer Moore is ready to assist you as well.  You can contact Jennifer at (206) 436-2253 or jmoore@seattlelh.org.

Previous Page | Horizons Main Page | Home