Why Give Life Insurance?
Many of our supporters have found life insurance the ideal vehicle for making a significant charitable gift, either during life or at death. Consider the advantages:
- A gift of life insurance is certain. The full proceeds are payable to assure your philanthropic goals are achieved.
- Life insurance is paid promptly. It is not tied up in the administration of the estate.
- Unlike a will, life insurance is not a matter of public record. Proceeds can pass for the benefit of Lakeview Ministries in privacy, if you desire. We would be pleased, of course, to provide public recognition of your generosity.
- Life insurance gifts are simple. Just ask the insurance company for the appropriate forms to make us owner or beneficiary of a policy.
- Gifts of a policy are tax deductible, as are future premium payments.
Here are a few ways life insurance can be used to enlarge your support…
A Gift of an “Unneeded” Policy
Suppose your family is grown and no longer needs a $50,000 policy purchased many years ago. Let’s assume further that the cash surrender value of your policy is $20,000 and the premium cost is $500 annually.
If you contribute the policy to Lakeview Ministries (or another valued charitable organization) and continue paying the premiums, you will be entitled to an income tax charitable deduction of about $20,000, reducing your taxes by $5,600 if you are in the 28% tax bracket. In addition, each year you will be entitled to another $500 deduction for the annual premiums you pay, saving $140 in income taxes. At your death, the full $50,000 proceeds will be used to further the ministry at Camp Lakeview.
Wealth Replacement Plans
Supporters who wish to “replace” contributed assets in their estates can purchase life insurance payable to family members, funded partly by tax savings from their charitable deductions or from the annual proceeds of a charitable remainder trust. The life insurance replaces the assets that Lakeview Ministries receives, and if you employ an irrevocable life insurance trust, your family can receive the insurance proceeds free of gift or estate tax. At death, both the family and Lakeview Ministries benefit.
Revocable Beneficiary Designation
You can keep lifetime ownership rights in a policy (the right to borrow against or cash in a life insurance policy, for example) and still name Lakeview Ministries as the beneficiary of part or all of the proceeds. Your estate will be entitled to a charitable deduction for the amount passing to us. If you’d prefer, you can name us as contingent beneficiary of a life insurance policy. Then we would receive the proceeds only if your primary beneficiary died before you.
Gifts on the Installment Plan
Would you like to be a $100,000 or million-dollar contributor? Life insurance allows you to make a substantial gift at a very affordable cost. You can purchase a new policy on your life, naming us as the owner and beneficiary. Annual premiums are fully deductible as charitable gifts and often can be paid up after only five or seven years.
We invite you to meet with our Executive Director (812-342-4815) or a member of the Camp Lakeview Foundation to explore the splendid opportunities available for planning a truly satisfying gift. We also would be grateful if you inform us of your plans for a gift of life insurance.