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Our supporters often overlook the benefits of giving a life insurance policy to Home of Hope.
If you are carrying more insurance coverage than your family obligations now require, you may find a hidden gift asset in a surplus, paid up policy. Alternately, you could create a gift for the future by taking out a new policy on your life and naming Home of Hope as the owner and beneficiary, thus creating an endowment gift from income rather than capital.
You must name Home of Hope as irrevocable [you can’t change the terms in the future] owner and beneficiary of the insurance policy to secure tax benefits from your gift. A gift of a paid-up policy produces a charitable deduction in the amount of the policy’s cash surrender value or basis, whichever is less.
The most often used method of using life insurance to make a sizable contribution is to create a new policy naming Home of Hope as owner and beneficiary. You make a cash gift to Home of Hope in the amount of the annual premium and you will receive a tax deductible charitable contribution letter in that amount. Home of Hope then makes the annual premium payment using the gift. The policy remains in effect for as long as you make an annual gift matching the amount of the insurance premium.
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