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Donating Your Life Insurance to Charity Lincoln NE

If you donate a term life policy to a charity, you can deduct the cost of the premiums from your taxes. Read on and know more about life insurance.

Michael Collins
6600 O Street
Lincoln, NE
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Wealth Engineering,Pension for Highly Compensated Owners,Stock Market Alternative,Reverse Mortgage,Disability Insurance,Retirement Planning,Real Estate Investment Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Planning,Fee-Only Comprehensive Financial Planning,Portfolio Engineering,Mortgage Refinancing,IRA, 401k, Roth IRA, QDRO Rollovers,CD Alternative,Alternative Investments,Annuities,Alternative Asset Class Planning,Investme

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Michael Cooper Insurance Agency
(402) 610-0274
1401 N 56th St Ste 112
Lincoln, NE
 
Forsyth Insurance Agency
(402) 483-7861
1265 S Cotner Blvd Ste 21
Lincoln, NE
 
MHFS Agency
(402) 489-6110
2320 S 48th Ste 101A
Lincoln, NE
 
R Hoy, Dean - State Farm Insurance Agent
(402) 489-7171
3883 Normal Blvd
Lincoln, NE
 
Christopher M. Collins (RFC®), CFP, CLU, MSFS
(402) 438-5500
2200 Fletcher Ave., Suite 100
Lincoln, NE
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Tomorrow's Money
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Education: AA, BA, MS
Years of Experience: 37
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IARFC, SFSP
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Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Retirement Planning, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Compensation Plans

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Assurity Life Insurance Company
(402) 476-6500
1526 K St
Lincoln, NE
 
Krikac, Vinnie - State Farm Insurance Agent
(402) 474-1173
935 Plum St
Lincoln, NE
 
Executive Insurance Associates
(402) 465-4554
7500 South St
Lincoln, NE
 
Hudson Financial Group Inc
(402) 802-9246
8700 Executive Woods Dr Ste 500
Lincoln, NE
 
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Donating Your Life Insurance to Charity

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Donating Your Life Insurance to Charity

As the hunt for funding gets more and more challenging for many non-profit and charitable organizations, I've seen more and more short bit's of information on donating your life insurance as a legacy. Is this a good idea? What do you need to know before you decide to take this route? And is it the best one for you?

First of all, charitable donations are tax deductible. While this isn't usually a prime motivator for most of us, it does make the donation to a charity even more inviting. After all, you can support a cause you believe in and get a tax break on the money you give. It's a win-win, right? If a tax benefit is one of your motives for signing away the benefit's of your life insurance policy, you should first confirm a few things first.

You need to be sure that the organization actually has non-profit status. If it does, it will be a 501(c)(3) organization. These kinds of organizations are the only ones that qualify for tax deductions.

Once you've confirmed the organizations status, talk to someone at the organization to make sure it will accept your life insurance policy proceeds as a gift. Some charities prefer not to receive these kinds of donations, due to the amount of work involved for them.

In order to take a deduction when the time comes, you will have to make the charity both the owner and the beneficiary of your policy. If you name the charity as your policy's beneficiary, but not the owner, then the IRS won't let you deduct the donation of your life insurance proceeds from your taxes. It's that simple.

So, if insurance is your donation of choice, do you donate a term life policy or whole life policy? Term life insurance policies cost you the least, but they're also the least attractive to charities. After all, once the term expires on that policy, it's worthless. Whole life policies cost more, but they have a cash value that builds up the longer you pay premiums on them. Thus, a whole lif...

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