Gift Life Insurance

How to Make a Gift of Insurance

There are several ways to make a gift of life insurance to Yarmouth Hospital Foundation:

1. You can purchase a life insurance policy and make Yarmouth Hospital Foundation both the beneficiary and owner. With this option, you will receive a tax receipt for the premiums paid. This way, you are able to make a substantial future gift at a considerably reduced after-tax cost.
2. You can assign an existing policy to Yarmouth Hospital Foundation. You will receive a tax receipt for any cash value in the policy. While there may be a taxable gain to report as income, the resulting tax credit could be greater than any income tax triggered by the donation. In some cases, it may be possible to receive a tax receipt for the fair market value of the policy as determined by an actuary (less any policy loans outstanding).
3. You can name Yarmouth Hospital Foundation as a beneficiary of a policy without transfer of ownership. In this case, an immediate tax receipt is not issued, but your estate will receive a tax receipt when the policy is paid upon your death. The receipt will produce a tax credit for your final tax return.