A gift of life insurance is one way you can make a major contribution to your parish, the Archdiocese or Catholic Charities at a relatively low cost. Gifts of life insurance can be made to the Archdiocese of Baltimore for the benefit of your parish, school, Archdiocese, or other program or ministry of the Archdiocese. A gift of life insurance is best described as a bequest at discounted cost on an installment plan. There are several possible plans:
- Donate an existing paid-up policy: Name the Archdiocese of Baltimore or Catholic Charities as the permanent owner and beneficiary of the policy. You can deduct the "terminal interest reserve" (IRS language that means "approximately the cash surrender value") as a charitable contribution for income tax purposes.
- Purchase a new policy: The Archdiocese of Baltimore or Catholic Charities can be applicant, owner and beneficiary of the policy. You make annual contributions to the Archdiocese of Baltimore or Catholic Charities that equal the premium cost. The designee then pays the premium. Your annual contributions are charitable contributions for income tax purposes.
- Name the Archdiocese of Baltimore or Catholic Charities as beneficiary; retain the other rights of ownership: While you receive no income tax benefit, the parish, the Archdiocese or Catholic Charities ultimately receives the death benefit, and, while the insurance benefits will be included in your estate, your estate will be entitled to an estate tax charitable deduction for that amount.
- Name the Archdiocese of Baltimore or Catholic Charities as contingent beneficiary: We receive funds should your primary beneficiary die before you do.
