Sample policy Life Insurance gifts

Sample gift acceptance policy

Gifts of Life Insurance

(Replace your group's name where you see "Organization")

Our organization will accept the following gifts of whole life insurance:

Irrevocable Transfer of Ownership to "Organization" during lifetime:

Gifts where the donor irrevocably transfers ownership of a paid-up policy to "Organization", and "Organization" is the named beneficiary.

Gifts where the donor irrevocably transfers ownership of a policy to "Organization" where the donor continues to make payments either annually or in one lump sum, and "Organization" is named beneficiary.

In these two cases, a charitable tax receipt will be immediately issued to the donor for the cash value of the donated policy and for any annual premiums they continue to pay.

Where a donor ceases to make the required policy payments, the Board of Directors will decide whether or not to continue to make the payments in order to secure the future death benefit.

Beneficiary on death:

Gifts where the donor names "Organization" as the beneficiary of a policy.

Gifts where the donor names their estate as the beneficiary of the policy and includes a gift in the Will to "Organization" equal to the proceeds of the policy.)

In these two cases, a charitable tax receipt is issued to the estate of the donor. The receipt will only be issued upon receipt of the funds.

Any potential gift that falls outside the parameter of this policy statement will be considered for acceptance on an individual basis by the Board of Directors.

Our organization shall:

Ensure effective communication with the donor to ensure that the donor understands the following:

• gifts that involve a transfer of ownership are irrevocable
• the donor maintains the right to change the beneficiary selection where no transfer of ownership occurs.

The donor will be encouraged to seek professional financial, tax and legal advice before making the gift as some gifts of insurance can have tax consequences for the donor.

Obtain the services of an independent licensed insurance agent to review the gifted insurance policy to make certain that its terms and conditions are clearly understood.