Life Insurance Gifts

Life insurance that you no longer need for your family's security may be an attractive asset to donate to the Algonquin. You may contribute a new or an existing policy by naming the Algonquin to be first, second or final beneficiary of all or a portion of the proceeds. Your estate may be entitled to a charitable deduction for the proceeds passing to the Algonquin.

If you name Algonquin Arts as irrevocable owner and beneficiary, you will be allowed to claim an immediate income tax deduction for either a fully or partially funded policy. If you donate a new or partially funded policy, you can make annual gifts to the Algonquin to cover the cost of subsequent premium payments to maintain the policy and you can deduct those gifts as well.

Life insurance may also be used to replace some or all of the value of another asset given to the Algonquin. You may use the tax saving generated by the charitable income tax deduction to purchase, directly or in a trust, a life insurance policy whose non-taxable proceeds would be payable to family members or other beneficiaries.

This technique is often referred to as Wealth Replacement because you are using life insurance to replace the value of an asset that you have given to the Algonquin.