Three ways Your Life Insurance Could Benefit the Blue Hills

Three ways Your Life Insurance Could Benefit the Blue Hills

People who care passionately about the Blue Hills think about caring for the Blue Hills today, tomorrow and for years to come.  These people have joined the Skyline Society, a select group of people who have let us know that they intend to remember the Friends of the Blue Hills in their Will or designate the Friends as a beneficiary of a bank account, retirement plan or life insurance.  Learn more about the Skyline Society and meet some of the members.

Naming the Friends as a beneficiary of your life insurance maybe right for you, if you want to benefit the Blue Hills in the future.  Here are three ways to consider how life insurance could help the Blue Hills.

Charitable Giving Rider

Some insurance companies offer a no cost charitable giving rider on certain policies with face value of over $1 million. These riders provide an additional 1 to 2% of the policy’s face value when the benefit is paid to a charitable organization like the Friends of the Blue Hills.  These riders are not offered on term policies (where the policy expires after a certain number of years). They are often found on “joint and survivor” policies. If you have, or are considering buying, a “permanent” life insurance policy such as a traditional whole life, universal or variable life policy, ask your insurance company or broker about adding the charitable giving rider.

Policy Donations

Sometimes a life insurance policy purchased to protect one’s family or to provide liquidity to pay estate taxes is no longer needed. Instead of surrendering the policy for the cash value, or trying to sell the policy to an investment group (known as a life settlement), you could consider donating the policy to the Friends of the Blue Hills. You will get a tax deduction for the fair market value of the policy that could significantly exceed the cash surrender value. If the cash value of the policy is substantial, the Friends maybe able to keep the policy in force without the need for additional premium payments. If ongoing additional premiums are required and you want to pay those premiums, you could do so with a tax-deductible gift to the Friends earmarked for that policy premium.

Naming the Friends of the Blue Hills as Beneficiary

Naming the Friends of the Blue Hills a beneficiary of your life insurance policy is the simplest way to make a significant contribution to the Blue Hills. You could name the Friends to receive 100% or some lesser percentage of the death benefit. This approach gives you the flexibility of changing the beneficiary at any time, and may be a good first step if you have a policy, but still need a portion of the benefit for your family and therefore cannot donate the policy at this time. As you would still own the policy, there are no tax benefits to this approach.

Advice is Available

If you have a life insurance policy, or would consider buying a new policy to benefit the Friends and would like to discuss these concepts in more detail, one of our long time members, who is a licensed life insurance advisor, has offered to donate his time (i.e. no cost to you) to make himself available to any Friends member for a consultation.  Please contact us for details by emailing or calling 781-828-1805.

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