Can I donate my life insurance policy to charity?
If you have a life insurance policy that you no longer need because of a change in your life circumstances, you can give a paid-up policy to St. Jude. You can also donate a policy you are still paying premiums toward, though you may be requied to donate the annual amount necessary to maintain the policy in-foce; this is on a case-by-case basis and determined after review.
What types of insurance can be donated to charity?
Both term and permanent life insurance policies can be donated to St. Jude. However, a permanent policy is more conducive to donating. Both policies that are fully paid and those with ongoing premiums can be accepted, although those with premiums will need further review.
- A term life insurance policy has an end date, meaning if you outlive your policy, the money won’t be donated.
- A permanent life insurance policy will guarantee your money goes to your chosen charity, as it lasts your whole life.
Benefits of donating life insurance
One of the main benefits of donating a life insurance policy to charity is that it can increase the amount you’re able to give. For example, if you pay $100,000 in premiums on a life insurance policy, the death benefit could be double that or more.
Donating life insurance can also be a more affordable way of contributing to charity. Rather than giving a large amount all at once, you can pay the smaller monthly premiums and still make a substantial donation to a charity, like St. Jude.
Additionally, your charitable gift of a life insurance policy may:
- Reduce your taxable estate and lower estate taxes
- Provide tax deductions for both the current value of the policy and for any future premium payments
ALSAC/St. Jude Children’s Research Hospital does not provide tax, legal or accounting advice. This material is prepared and made available to you for informational purposes only and is not intended to provide or be relied upon for tax, legal or accounting advice. You should always consult a tax professional to determine your particular tax benefits that may result from any particular type of gift to charity.
Change the owner of a life insurance policy
One way to donate a life insurance policy to a charity, like St. Jude, is by transferring ownership of the policy to the charity itself. You can transfer ownership of a paid-up policy or a policy on which you are still paying premiums. When you transfer ownership, the charity gains full control of the policy and can name itself the beneficiary, allowing the charity to receive a tax-free payout after your passing.
Name a charity as the beneficiary of life insurance
You can name a charity, such as St. Jude, as a beneficiary to your life insurance policy. You can also name more than one beneficiary and divide the policy amount. Some donors may name multiple individuals or multiple charities as beneficiaries of their life insurance policy.
If you choose this option, you will still have full control of the policy during your lifetime.
Add a charitable giving rider
A charitable giving rider is an add-on to a term life insurance policy that stipulates an additional benefit will go to a charity of your choosing, like St. Jude, when a claim is filed. This ensures a charity will receive a payout without the need to add them as a beneficiary or transfer ownership of the policy.
Charitable giving riders are not available with every life insurance policy. Speak to your insurer to see if this feature is available for your policy.
Tax ID Number:
We are a tax-exempt, charitable institution listed in the Federal Internal Revenue Service Publication #78, "Cumulative List of Organizations," revised IRS Code 501(c)(3).
Why donate to St. Jude?
Families never receive a bill from St. Jude for treatment, travel, housing or food — so they can focus on helping their child live.
When St. Jude opened in 1962, childhood cancer was considered largely incurable. Since then, St. Jude has helped push the overall survival rate from 20% to more than 80%, and we won't stop until no child dies from cancer.
Every child deserves a chance to live their best life and celebrate every moment. When you support St. Jude, you can help make cures possible for kids with cancer. Together, we can save more lives.
Our Gift Planning department has a representative in your area who can provide further information or help you prepare the right questions to ask your financial advisor to determine what type of planned gift may be right for you.
Email firstname.lastname@example.org, call (800) 395-1087, or fill out the form below, and a St. Jude representative will contact you.
Have you left St. Jude in your will or estate plan?
As an acknowledgment of your generosity when you give a gift to St. Jude through your will or estate plan, you become a member of the Danny Thomas – St. Jude Society, and we recognize your commitment to the mission of St. Jude in a variety of ways.
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