Life Insurance Policy

Sometimes people find themselves with life insurance policies they no longer need after the death of a spouse or after children are grown. By contributing such a policy to UJA-Federation, a donor can make a wonderful gift and reduce taxes that may otherwise be due upon your death.

The donor can also receive a charitable income-tax deduction for the cash surrender value of the policy when he or she irrevocably assigns the policy to UJA-Federation. Be sure to use our legal name and address as follows:

United Jewish Appeal-Federation of Jewish Philanthropies of New York, Inc.
130 East 59th Street
New York, NY 10022

UJA-Federation Life Insurance Program

Gifts of Percentage Interest in a Policy
Some might choose to designate UJA-Federation to receive only a partial interest (e.g., a percentage) of a life insurance policy.

Gifts of New or Partial-Paid Policies
Some may also assign a partially paid policy to UJA-Federation and keep the policy active by sending premium payments to UJA-Federation. Or the donor may purchase a new policy and name UJA-Federation as owner and irrevocable beneficiary. All insurance premium payments would qualify as tax deductible if the donor itemizes.

Gifts That Save Capital Gain
Gifts of securities can be used to cover the payments on a new or partially paid life insurance policy, with UJA-Federation named as a beneficiary. By donating securities, capital-gain tax can be eliminated entirely.

Insurance Dividends
The dividends of a whole life insurance policy may be designated to UJA-Federation without reducing the death value of the policy for beneficiaries. The donor, who remains the owner of the policy, retains the right to borrow against the policy.

Naming UJA-Federation as Beneficiary
Another option is to designate UJA-Federation as the primary beneficiary or co-beneficiary of a life insurance policy. The donor would retain ownership of the policy and have access to the policy’s cash value. Because the donor retains ownership, no charitable income-tax deduction is allowed at the time of the designation. Although the face value of the policy will be included in gross estate at death, the estate will be entitled to an offsetting charitable estate-tax deduction.

Want to see a diagram about how a gift of life insurance policy works? View the diagram of this gift

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