Gifts of Life Insurance
Deuteronomy 28: 8, 11
“The Lord will command the blessings upon you in your barns, and in all that you undertake;
he will bless you in the land that the Lord your God is giving you. … The Lord will make you abound in prosperity…
in the fruit of your ground in the land that the Lord swore to your ancestors to give you.”
A gift of life insurance is an affordable way to make a gift to the Bishop Budka Eparchial Stewardship Society Inc. (BBESSI).
There are four ways for you to provide a charitable gift of life insurance.
- New Policy: Your annual premium is considered a charitable contribution when you make the Bishop Budka Eparchial Stewardship Society Inc. (BBESSI) the owner and beneficiary of the policy. You receive a tax receipt for its value which can offset annual income tax.
- Paid Up Policy: If you have a paid up policy that is no longer needed for your original purpose, it can be transferred to the Bishop Budka Eparchial Stewardship Society Inc. (BBESSI). You receive a tax receipt for the fair market value of the policy which can offset income tax payable.
- Existing Policy: You can transfer ownership of your policy. The advantage is that you do not have to go through the process of buying a new policy which is beneficial if there is a health consideration that might result in a denied application. You will receive a charitable receipt for any cash value on transfer plus an annual receipt for premium payments.
- Named Beneficiary: Name the Bishop Budka Eparchial Stewardship Society Inc. (BBESSI) beneficiary and receive a tax receipt to your estate for insurance proceeds paid directly to (BBESSI).
Benefits of making a gift of life insurance to the Bishop Budka Eparchial Stewardship Society Inc. (BBESSI) include:
- Receiving a tax receipt based on the way the insurance was gifted;
- Avoiding probate. Gifts of life insurance are less susceptible to being contested than a charitable bequest, and provide privacy;
- Designating your gift to a priority that meets your interests, such as a ministry, capital projects, library and other programs.
Life Insurance Policy Planned Gift Example:
You want to make a planned gift to the Bishop Budka Eparchial Stewardship Society Inc. (BBESSI), but you don’t have the funds to make a gift out of your current financial situation like what you want to. One option is to purchase a life insurance policy and make Bishop Budka Eparchial Stewardship Society Inc. (BBESSI) the owner and beneficiary of that policy. You benefit today by receiving a tax donation receipt for the amount of the premiums you paid, and you receive the satisfaction of knowing you are leaving your faith community a wonderful legacy of hope.
|Donor purchases a life insurance policy and makes the Bishop Budka Eparchial Stewardship Society Inc. (BBESSI) the owner and beneficiary of the policy. The donor is entitled to a donation receipt for premiums paid to the insurance company after ownership has been transferred to the charity and for contributions made to the charity to cover the premiums.|
|Face Value of Policy||$100,000|
|Premiums paid by Donor||$35,000|
|BBESSI issues a charitable donation receipt to donor to be used on donor’s annual income tax.||$35,000|
|Tax Credit to Donor (assuming 44%)||$15,400|
|After-tax cost of policy ($35,000 – $15,400)||$19,600|
|The donor receives a $35,000 tax donation receipt which amounts to a $15,400 tax credit to reduce “tax owing”. The cost of the $100,000 policy is actually only $19,600.|
This information is general in nature and does not constitute legal or financial advice, and should not be relied upon as a substitute for professional advice. We strongly encourage you to seek professional legal, estate planning and/or financial advice before deciding on your course of action.
If you would like more information about making a gift of life insurance to the Bishop Budka Eparchial Stewardship Society Inc. (BBESSI), please contact the BBESSI office at 306-653-0138 ext. 223 or by e-mail at firstname.lastname@example.org.