Life Insurance

Life insurance is essential for a number of different reasons. It is a financial instrument that allows you to protect your family and loved ones when you’re gone, as well as a tool to finance your goals from education to retirement while you are alive.

Life Insurance can be used to

    • Make provisions to take care of your family at your death, guaranteeing that your family will continue to receive income.
    • Give your survivors choices about their future - if you own a home, your life insurance might pay off the mortgage so your family can stay in the house rather than being forced to sell it.
    • Provide an income to let your family maintain its standard of living and cover everyday expenses such as groceries, bills, rent, the mortgage, etc.
    • Set at least enough money to take care of your final expenses so your loved ones won’t have to worry about those costs.

Life insurance can also be used to

    • Supplement your retirement.
    • Help cover the expenses of raising your children.
    • Help pay for your children’s education.
    • Preserve your estate.
    • Safeguard your home mortgage.

Gifts of Existing Insurance

There are several ways to give life insurance.

    1. Transfer a current policy to the university.
    2. A life insurance policy with a cash value can be reduced to cash in exchange for a charitable gift annuity or charitable trust.

Why transfer a current policy?

    • You no longer need to provide for the survivors of the person who is insured.
    • It will add to the size of someone’s taxable estate without providing any real benefit to survivors.
    • It is an old policy and does not provide a good economic return.


A 60-year-old person owns a policy with a $100,000 death benefit, which has been in force for 15 years and has $15,000 in cash value. When given as a gift, the following occurs:

    • The charity will receive $100,000 at the time of the insured person’s death. (Therefore, a small gift of $15,000 will provide a much larger gift of $100,000 to the charity.);
    • The charity can utilize the cash value of the policy should the need arise;
    • The $15,000 cash value will provide an immediate charitable tax deduction for the gift donor;
    • and The donor will reduce the size of his or her taxable estate by the amount of the death benefit — $100,000. This would result in reducing the estate taxes owed by up to $55,000, depending on the donor’s estate tax bracket, if it is a taxable estate.

We would be pleased to assist you at any time with a planned gift of life insurance. Please contact us at 732.987.2247 or for more information or to request help in getting started.