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.
Name the Friends as the Beneficiary of an Existing Policy
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 percentage given to any beneficiary, or removing a beneficiary at any time. You do not need an attorney, as your insurance company provides Beneficiary Change forms. As you would still own the policy, there is no current tax deduction with this approach.
Donate Your Policy
Sometimes a life insurance policy purchased to protect one’s family, provide liquidity to pay estate taxes or for business purposes is no longer needed. Instead of surrendering the policy for the cash value, or selling the policy to an investment group (known as a life settlement), consider donating the policy to the Friends of the Blue Hills. You will get a tax deduction for the lesser of the total premiums paid (net of dividends received) and the cash surrender value of the policy. If the cash value of the policy is substantial, the Friends maybe able to keep the policy inforce 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. If you do not want to gift to pay the ongoing premiums, the Friends will pay the premium from general donations.
Allow the Friends to Purchase a New Policy
If you have no life insurance, or, the life insurance you have is still needed, and you are in good health, allowing the Friends of the Blue Hills to purchase a policy on your life is a great way to provide a substantial gift to benefit the Blue Hills. The procedure is the same as if you were purchasing the policy for yourself, only the owner and beneficiary of the policy is the Friends of the Blue Hills. As ongoing premiums are required, you would pay those premiums with a tax-deductible gift to the Friends earmarked for that policy premium.
Need help deciding? Consulting Services at No Cost to You.
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 info@FriendsoftheBlueHills.org or calling 781-828-1805.