Life Insurance

Life insurance provides a convenient way to fund meaningful gifts. You may simply name NCCF as the beneficiary or contingent beneficiary of part or all of your insurance policy proceeds.

A policy that is no longer needed for the protection that was originally intended may be used to help you meet your philanthropic goals. By making Northwest Christian Community Foundation the owner and beneficiary of a life insurance policy, you receive a charitable deduction.

Northwest Christian Community Foundation would be glad to provide assistance to you and those advising you with your estate plans. For additional information on funding gifts through life insurance, please contact us at office@nccf4christ.org or phone at 503-5892-6264.

Gifts to Northwest Christian Community Foundation through life insurance are very beneficial gift options for donors and the foundation.  Life insurance gifts enable donors to make a substantial gifts – often far more significant than they thought possible.

There are three ways to make a life insurance gift to Northwest Christian Community Foundation.

1. Transfer an existing policy to NCCF, perhaps a policy no longer needed for the protection that was originally intended.  In most cases, this will involve a “paid-up” policy.  By making NCCF the owner and beneficiary of the policy you receive a charitable deduction based upon the current cash value of the policy.  [Example]
2. Purchasing a new policy with NCCF named as applicant, owner, and beneficiary. Premium payments are contributed to Northwest Christian Community Foundation and are cash donations to NCCF.  NCCF makes the payments to the insurance company.  [Example]
3. Designate Northwest Christian Community Foundation as a beneficiary of an existing policy.  Because you retain ownership of the policy, there are no immediate tax savings and the benefits may be subject to estate tax.  NCCF will benefit from a very meaningful gift.

For more information about life insurance gifts, contact us at office@nccf4christ.org or phone at 503-5892-6264.  Financial and tax deduction calculations, customized gift plan proposals and counsel are available at no charge or obligation.

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Example – transfer an existing policy.

A gift of an existing life insurance policy must effectively transfer ownership of the policy and all incidents or benefits of ownership to Northwest Christian Community Foundation.  The surest method of accomplishing this is the use of an absolute assignment of the policy.  Your insurance company will have appropriate forms available to accomplish this.  It is important that the ownership of the policy be transferred on the company’s books and an endorsement be sent to NCCF.

Sample language for the assignment of the outright assignment of a life insurance policy.

I, Richard Underhill, of Newport, Oregon, hereby assign to Northwest Christian Community Foundation all of my right, title, and interest in and to an insurance policy on my life, numbered HJ667889, and issues by the Dependable Life Insurance Company.

IN WITNESS WHEREOF, I have executed this assignment this ________ day of __________, 2012.

                                                      ____________________

                                                      Richard Underhill

When an individual contributes an insurance policy to charity, the amount of his contribution is generally the lesser of (1) the value of the policy or (2) the donor’s basis in the policy.  The value of a life insurance policy is generally the replacement cost of a comparable contract.

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Example – gift of a new policy with NCCF as owner and beneficiary, donor makes premium payments.

A donor may contribute a life insurance policy in which the premiums remain payable.  Or, a new policy may be initiated in which NCCF is the owner and beneficiary, and holds all ownerships rights in the policy.  The donor has made a commitment to make gifts to Northwest Christian Community Foundation that will be applied to the premium payments. 

Walter Baker has contributed a life insurance policy with a death benefit of $225,000 to Northwest Christian Community Foundation.  The premium payments for the policy are $123 per month.  Walt has made a commitment to contribute $123 a month to NCCF to cover the cost of the life insurance.

The gifts to Northwest Christian Community Foundation are fully deductible as charitable gifts.  He will receive a receipt from NCCF acknowledging his gifts each year.

It is important to note that life insurance proceeds are paid promptly and not subject to the delays and costs generally associated with estate planning methods.

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