You can make the Central Pennsylvania Food Bank the owner and beneficiary of an already existing paid-up life insurance policy. By doing so, you may be able to deduct an amount equal to the approximate cash value in the year that you make the gift. Since the Central Pennsylvania Food Bank becomes the owner of the policy, the proceeds will not be included in your estate for tax purposes.
The process is simple. The donor transfers ownership of the paid-up life insurance policy to the Central Pennsylvania Food Bank. The Food Bank then elects to cash in the policy at the time of the donation or to hold it.
Frequently Asked Questions Regarding Gifts of Life Insurance
Q: How do I arrange a gift from my life insurance?
A: Simply contact your life insurance company and request a Change of Beneficiary/Ownership Form and designate the Central Pennsylvania Food Bank as the new owner and beneficiary of your policy.
Q: What are the tax implications of a gift of life insurance?
A: If you give your policy to us while you are still alive, you will receive an immediate income tax deduction for the current value of the policy. This amount can vary depending on several factors, please let the Central Pennsylvania Food Bank help you determine what that amount might be.