LIFE INSURANCE can be used to fund a charitable gift to the Jewish Community Foundation, permitting you to make a substantial legacy gift for a relatively modest outlay.
How Does It Work?
There are several different ways you can contribute to the future of the Jewish community through life insurance policies:
You may transfer a fully-paid existing insurance policy to the Federation and name the Federation as the policy’s irrevocable owner and beneficiary. The Federation is assured of a guaranteed sum in cash at the end of your life, to be used for purposes that you specify. You will receive a tax deduction for the value of the policy at the time of the contribution.
You may purchase a life insurance policy and name the Jewish Federation of Greater Pittsburgh as the irrevocable owner and beneficiary. You make the annual premium payments, for which you may also receive a charitable income tax deduction. At your death, the insurance policy’s benefits go to the Federation as you specify.
Additional Benefits Through a Foundation Program
The Jewish Community Foundation has a special program to pay half of the premiums for gifts of insurance purchased to create an unrestricted endowment or an annual campaign endowment. In order to qualify for the premium splitting, the following guidelines are required:
- Policies must be issued by companies rated “A” or better by two or more major rating services.
- Illustrating proposals must show that the policy is fully funded in three annual payments.
- The contract can be individual life or survivorship life.
What Are The Benefits?
- You receive a charitable income tax deduction for the life insurance premiums you pay.
- A gift of life insurance is easy to arrange and to administer.
- You can fund a large endowment to support Pittsburgh’s local agencies and overseas beneficiaries, even if you do not currently have the funds to do so.
- You can choose to specify the purpose of the life insurance benefit, such as creating or augmenting an unrestricted endowment fund, a Lion of Judah Endowment or Legacy Fund, a special purpose fund, a donor-advised fund or a supporting foundation.