Panama City Rescue Mission- Gifts of Life Insurance

Present financial responsibilities sometime limit our capacity to give to causes that are important to us. Today, there is a new method for friends like you who want to make a significant gift to Panama City Rescue Mission.

Options for Making a Gift of Life Insurance

There are several options available to you for giving through life insurance. All of the options allow you to make a significant gift to Panama City Rescue Mission. You may give an existing policy, a new policy, or name PCRM as a contingent beneficiary on a current policy.

Giving an Existing Policy

The need for life insurance changes as the circumstances of your life change. For young families, life insurance is usually purchased to provide security for loved ones or a personal business in the event of your death. Security for your children's education or payment of your home's mortgage are two other important reasons for buying life insurance.

But as your family matures and your finances stabilize, the need for some policies change or even disappear. An existing policy that is not needed can be given to Panama City Rescue Mission, providing current tax benefits for your charitable gift.

Bob and Mary Johnston bought a life insurance policy on Bob when they were young parents with two small children. Now their children are grown and on their own. Bob and Mary would like to give this paid-up policy of $100,000 to benefit the work of Panama City Rescue Mission, naming PCRM as the owner and primary beneficiary.

They will receive a current income tax deduction equal to the replacement cost of the insurance (usually a major portion of the cash value). Bob and Mary are pleased they could support PCRM with a gift of this stature.

Purchasing a New Policy

Almost anyone can make a sizable gift to Panama City Rescue Mission by purchasing a new life insurance policy. Life insurance provides an excellent opportunity to reach your desired level of commitment at a comparatively low annual cost.

A current gift can be made to PCRM which will purchase a policy with a face amount equal to your desired commitment level. Panama City Rescue Mission would be the owner and beneficiary of the policy. You will receive an income tax deduction for the amount of your initial gift and any subsequent gifts to pay annual premiums. It is also possible to make an insurance gift with a single premium policy.

Margaret Wilson, age 40, has been a longtime friend an supporter of PCRM. Beyond her current level of giving, Margaret would like to make a significant gift.

By making a gift of life insurance to PCRM, Margaret can make a future gift of $100,000. For around $1,100 per year for eight years, she will significantly impact the services provided by Panama City Rescue Mission, while also receiving a tax deduction for each year's gift.

Naming PCRM as Beneficiary

You can also designate Panama City Rescue Mission as a primary beneficiary or contingent beneficiary while maintaining ownership of the policy. By doing so, you insure the proceeds of your policy are used as you wanted and can change the beneficiary designation at any time. This arrangement does not entitle you to current income tax deductions.

Co-Beneficiary - Policy proceeds are shared between PCRM and any other beneficiaries you name.

Second Beneficiary - Panama City Rescue Mission receives policy benefits if the first beneficiary predeceases you.

Last Beneficiary - Panama City Rescue Mission receives the policy's proceeds if both the first and second beneficiary have died.

Remainder Beneficiary - Payments remaining from a policy which pays an annuity to an heir when that heir does not live to receive the entire income, can be left to PCRM.

Replacing Your Charitable Bequest or Gift to Your Family

If you plan to make a gift to Panama City Rescue Mission in the form of a will bequest of a charitable remainder trust, you can give a life insurance policy to your children or an irrevocable trust for the same amount and replace the charitable gift to your family. The asset will also be removed from your taxable estate.

Purchasing a Policy on Another

If you are uninsurable, you can purchase a policy on another person, such as a spouse, child, or grandchild. Simply name Panama City Rescue Mission as the owner an beneficiary of the policy (PCRM should apply for the insurance in their life). Because the recipient of your charitable gift is the owner and beneficiary, you are entitled to tax deductions on the premiums you pay.

Benefits of a Life Insurance Gift

Freedom - Naming PCRM as beneficiary of a life insurance policy allow you to give more than you might have believed possible.

Versatility - A gift of life insurance has many options which allow you to meet your current responsibilities while also achieving your charitable goals. In addition, making changes in policy beneficiaries is often much less complicated than changing a will, establishing a trust, or altering other forms of planned gifts.

Tax Benefits - Current income tax deductions are available to you if you itemize when the ownership of a life insurance policy is transferred or given to PCRM. If you retain ownership of the life insurance policy, you are not entitled to an income tax deduction.

If you would like more information, or would like to discuss a gift of life insurance with a planning representative, please feel free to call us at 850-215-9007, or return the enclosed inquiry form. Your inquiry places you under no obligation.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Ministry Support section has been developed for Panama City Rescue Mission by John R Frank Consulting Group, Inc. Please report any problems to webmaster.