Advantages of giving Life Insurance include: Convenience, Ability to give more than otherwise possible, Flexibility, & Simplicity.
Ways to give Life Insurance
Give a Paid-Up Policy - A policy that has outlived its original purpose, has been replaced by another policy, or simply is not needed any longer, makes a convenient gift. For instance, a policy bought to provide for a college education that was completed without needing to cash in the insurance policy can be an excellent fit, fully deductible for the cash value.
Buy a New Policy - Some people find they can make a much larger gift than they could otherwise afford by taking out a life insurance policy and name the Diocese, their Parish, Catholic School, favorite Ministry or Missionary Project of the Diocese as their beneficiary choice. If you name any of the above as owner and beneficiary, the premiums you pay will be deductible on your income tax. It’s a way to make a large gift on the “installment plan.”
Give a Single Premium Policy for Maximum Benefits - Perhaps the best way to help the Diocese, your Parish, Catholic School, favorite Ministry or Missionary Project of the Diocese through the use of life insurance is purchasing and giving a single premium life insurance policy. You purchase this policy by making a premium payment which is entirely tax deductible if the Diocese or other diocesan entity is made the owner of the policy. Interest is earned immediately on the entire investment.
Buy Insurance to Replace a Bequest - While reviewing your estate plans, you might find that you can give an amount of money now that you had planned to bequeath in your will to the Diocese, your Parish, Catholic School or other Diocesan entity, receive the tax benefits of a current gift, and replace the money you had planned to bequeath by buying a life insurance policy for that amount. You can enjoy satisfaction of giving now and receive the tax deduction when you need it most, and still leave the same amount you had planned in your will.
Add a Beneficiary - Regardless of your financial circumstances, almost anyone can name the Diocese, their Parish, Catholic school or other Diocesan entity as secondary or final beneficiary of an existing or new policy. That simply means that if the first beneficiary(ies) predeceases you, the Diocese, your Parish or Diocesan institution or program becomes the beneficiary. This insures that if your own dependents do not need your funds, they will be available to continue the work that you are committed to. Because the gift is not definite, there are no income tax benefits, but if any funds do finally go to the Diocese, your Parish or other Diocesan program, they will be deductible from federal estate taxes.