OPTION 1—a charitable beneficiary designation

You may find that naming Timothy Two as the beneficiary of your life insurance policy is a comfortable, powerful way to make a future gift that costs nothing today and gives you the flexibility to make changes if your needs or goals change. You can name us as the:

• Primary beneficiary 

• Percentage beneficiary, along with one or more heirs or other charitable beneficiaries

• Contingent beneficiary, to receive the proceeds only if the primary beneficiary cannot

 

OPTION 2—make a tax-efficient gift of a policy

You may find that you own a life insurance policy you no longer need for its original purpose. Perhaps you bought it to pay off the mortgage or cover college tuition expenses, but now your home is paid off and your children are grown. In this case, you may wish to make an immediate gift of your policy.

• A paid-up policy. This is an easy gift to make. In many cases, the after-tax cost of this generous gift is only a fraction of the benefit we receive, and the gift qualifies for a charitable deduction (if you itemize) equal to the policy’s replacement value or your basis in the policy, whichever is less.

• A policy that is not yet paid up. Whether this is a gift of an existing policy or you plan to purchase a policy and transfer ownership to us, you could make annual gifts to us to pay the premiums (of course, those annual gifts would be tax deductible). Or we could surrender the policy for cash.

 

OPTION 3—give a policy, receive an income

You may find that transferring a policy into a charitable remainder trust (CRT) provides many tax and financial benefits. The trust will pay an income to your beneficiaries for life. When the trust beneficiary dies, the remaining trust assets pass directly to Timothy Two. You receive an immediate income tax deduction when you establish the trust for the present value of our remainder interest. Read more about CRTs.