Gifts of Life Insurance
Many Nebraskans have found that a gift of life insurance is an easy and convenient way to make a gift to support their hometown.
Why Give Life Insurance?
- The amount of your gift is certain - assuring that your desire to support your hometown is met.
- The proceeds from a life insurance policy are paid promptly and are not part of the probate process.
- Life insurance is a “quiet” gift - it is not a matter of public record.
- Life insurance gifts can be used to replace assets gifted to your hometown. Your family can receive the life insurance proceeds free of gift or estate taxes.
How to Make a Gift of Life Insurance
There are three ways to make a gift to your hometown using life insurance: with an existing policy, by beneficiary designation and with a new policy.
- With an Existing Policy Do you have a policy that was purchased several years ago but the need for that coverage no longer exists? Instead of cashing in the policy for its cash value, consider contributing the policy for the benefit of your hometown. By changing the ownership and beneficiary of the policy to the Nebraska Community Foundation for the benefit of your hometown, you will receive a charitable income tax deduction. Additionally, if your were to make future annual gifts of the policy’s premium, you will receive an additional charitable income tax deduction each year.
- By Beneficiary Designation Perhaps your need for the life insurance coverage continues. Instead of making a gift of the policy, you can choose to designate the Nebraska Community Foundation as a co-primary beneficiary or as a contingent beneficiary of the policy for the benefit of your hometown.
- With a New Policy Through the multiplier effect of life insurance you can make a substantial gift to your hometown on the installment plan. When you purchase a new policy and name the Nebraska Community Foundation as the owner and beneficiary for the benefit of your hometown, the gift you make by paying the premiums becomes fully income tax deductible. Thus, for pennies on the dollar you guarantee that your hometown will receive a meaningful gift in the future.
Recruiting Diverse, Committed Leaders
McCook Community Foundation Fund advisory committee members say that leadership recruitment is the key to continuing success. Stan Goodwin said, “We’re advocates of making this group representative of the community in terms of gender, age and economic status. No one has their own specific agenda. They’re just focused on the welfare of the community.”
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