A GIFT OF LIFE INSURANCE

There are a variety of ways that you can help XLNC1 in the future through your life insurance policy. A life insurance policy can produce a substantial benefit to your favorite charities and provide a wise tax deduction now or an estate tax deduction for your heirs once you have passed.

Assign ownership of a fully paid policy

Donors can make an outright gift of a fully paid life insurance policy by surrounding ownership and waiving the right to assign, borrow against it, or change the beneficiary of the policy. If your policy is fully paid, your deduction is equal to its replacement value or the total amount of premiums you paid.

Name XLNC1 as the beneficiary or contingent beneficiary.

You may elect to name XLNC1 as the beneficiary of your policy. This type of planned gift would allow you to retain ownership of your policy until your passing. You have the right to borrow against and change the beneficiary during your ownership. Because you are entitled to change a beneficiary at any time, you would not be entitled to an immediate charitable contribution deduction. Upon your passing, your estate would receive a federal estate tax deduction for the amount of your policy.

Naming XLNC1 as contingent beneficiary would benefit your estate tax deduction only if  the primary beneficiary dies or is otherwise disqualified.  Again, you retain ownership of your policy until your passing, and have right to borrow against it at any time.

Purchase a policy under XLNC1 name

When you purchase a new life insurance policy and designate XLNC1 as the owner and beneficiary, you are entitled to an income tax deduction for your initial contribution and the premium payment each year.

Similar to a bequest, life insurance can provide funds for paying taxes and other expenses after death. They are a terrific way to reduce estate tax for your loved ones.

We recommend that you contact a tax advisor, insurance company or estate executor to weigh your options. Once you have named XLNC1 as a beneficiary of a life insurance policy please notify Cynthia Fuentes at 619-575-9090 Ext. 413 or email cfuentes@xlnc1.org to receive recognition for your outstanding gift.