Life Insurance

You may find a hidden gift to maximize your legacy in a life insurance policy. Many consumers of life insurance take out policies when they have young children or other considerations and are left with an outdated policy later in life. If you have a policy that has outlived its purpose, you can use it to leave a legacy. You can also honor someone you lost by giving a policy you bought for that individual to Young America’s Foundation as a memorial in your loved one’s name.

You have tax-savings options for making a life insurance gift:

If you have an existing, paid-up life insurance policy, you receive a charitable income tax deduction if you name Young America’s Foundation as the owner and beneficiary. You can deduct the amount equal to the approximate cash value in the year you make the gift. The proceeds will not be included in your estate for tax purposes.
If you have an existing, non-paid-up life insurance policy, you receive a charitable income tax deduction now and in the future if you name Young America’s Foundation as the owner and beneficiary. You can deduct an amount equal to the approximate cash value of the policy in the year you make the gift. You can also deduct future premium payments, and the proceeds will not be included in your estate for tax purposes.
Another option is to name Young America’s Foundation as a beneficiary, but not owner, of an existing life insurance policy so the organization receives the full face value amount of the policy. You will not receive an immediate charitable income tax deduction, but the full amount received by the organization may be deductible from your estate. You can name Young America’s Foundation as a primary or secondary (also called “contingent”) beneficiary. If Young America’s Foundation is a secondary beneficiary, we will receive the full face value amount of your policy if your primary beneficiary cannot. This will give you peace of mind that your wishes will be fulfilled even in the case of unexpected accidents or events during which your designated primary beneficiary is unable to receive the proceeds from this policy.
You can also buy a new life insurance policy and name Young America’s Foundation as the owner and beneficiary of that policy. This is a great way to make a much larger gift than you could otherwise afford to pass on your ideas. You will receive a charitable income tax deduction for the premiums you pay on the policy.

To make a gift of life insurance, please contact us or ask your life insurance company for a “Change of Beneficiary” form. You will need Young America’s Foundation’s tax identification number: 23-7042029.