Gifts of Life Insurance
A gift of life insurance is one way you can make a major contribution to the Diocese at a relatively low cost. Gifts of life insurance can be made to the Diocese for the benefit of your parish, school, Diocese or other charitable ministry that conforms with the social guidelines of the Catholic church. A gift of life insurance is best described as a bequest at discounted cost on an installment plan.
There are several possible plans:
- Donating an existing paid-up policy. Name the Diocese as the permanent owner and beneficiary of the policy. You can deduct the "terminal interest reserve" (IRS language that means "approximately the case surrender value") as a charitable contribution for income tax purposes.
- Purchase a new policy. The Diocese can be applicant, owner and beneficiary of the policy. You make annual contributions to the Diocese that equal the premium cost. The designee then pays the premium. Your annual contributions are charitable contributions for income tax purposes.
- Name the Diocese as beneficiary; retain the other rights of ownership. While you receive no income tax benefit, the Diocese 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 Diocese as contingent beneficiary. We receive funds should your primary beneficiary die before you do.
The importance of using professional counsel
We always encourage prospective donors to seek the advice of professional concerning the best giving option for them. We would welcome the opportunity to provide you or your attorney with additional information on any of the methods of giving described here.
The information presented on this Web site is an overview based upon current tax laws; it does not purport to be definitive. We hope it will help you find the most mutually advantageous way to create and leave a legacy through your gift to the Diocese.
Saying "Thank You"
Sometimes people include a bequest for their parish or the Diocese of Madison and we learn about it only after their death. We are so grateful to them, for they have helped to assure a brighter future for many, and we would have enjoyed expressing our gratitude while they were living. For us it is important to say "thank you" and, when possible, to do so in person and tell us about your wishes.