Making a gift of life insurance

Giving the gift of your life insurance involves little effort or paperwork, comes with the financial advantage of continued ownership of your policy, and removes the asset from your potential gross taxable estate. You can change your mind and your beneficiaries at any time.  

If you continue to make premium payments on a policy after donating it to Best Friends, those payments are tax deductible. Please note that Best Friends is not able to make premium payments from its own funds. 

You might even consider a new life insurance policy. With payments that are low (and perhaps even automatic), you can create a gift capable of doing much greater good in the future.

There are two ways that you can make a gift of life insurance to Best Friends: 

You may name Best Friends as a full, partial, or contingent beneficiary of any policy. Don’t forget employer-sponsored life insurance offered at no cost to you.

You may donate outright a life insurance policy that is no longer needed. Best Friends would have the option of either holding or surrendering the policy to receive the current cash value. You may donate a policy that is paid up or one with ongoing premium payments. 

For example, Art bought a life insurance policy years ago that he now wants to donate to Best Friends. Since he gave the policy to us, Art can claim an income tax charitable deduction. The total amount of the policy is removed from his estate, and we will use the gift to help homeless pets at the Sanctuary and across the country. 

Ask your insurance provider for more details, or consult your legal or financial advisor to help you decide which option is best for you.