Bequests of insurance

Bequests of insurance


Marla* and Wayne purchased a life insurance policy many years ago to create security for their children's futures. As the children grew up, married, found good jobs and accumulated significant assets, the insurance was no longer needed for its original purpose.

Marla: We volunteered regularly with The American Legion and wanted to know if there was any benefit to giving our policy away to this good cause.

Wayne: I wasn't ready to part with the insurance quite yet – I wanted to preserve the option of giving it to our family if someone needed extra help down the road. We both wondered if there was a way we could commit now to help the Legion’s work, but make the gift at a later date when it was clear the policy wouldn't be used.

The American Legion gift planner told them they could include a bequest of insurance today that would help achieve their personal and charitable goals. The bequest could be made by simply naming the Legion as beneficiary of their policy. With the beneficiary designation unchanged during life, the insurance proceeds would go to help its future work. In addition, their estate could benefit from an estate-tax charitable deduction based on the value of the proceeds paid.

Marla: The insurance bequest made sense to us.

Wayne: I also liked the fact that our estate would benefit from tax savings, which would help preserve other assets intended for our family.

Is a bequest of a life insurance policy right for you? Creating a bequest of life insurance is an easy gift to establish. You can easily leave a policy to charity if it is no longer needed for its intended purposes by completing a beneficiary designation form. If you have questions about bequests of life insurance policies, please contact us. We would be happy to answer any questions you have.

*Please note: Names and images are representative of a typical donor and may or may not be an actual donor to our organization. Since the benefits of a POD gift may differ depending on your personal circumstances, please consult your legal, tax or financial adviser.

The American Legion’s Planned Giving program is a way of establishing your legacy of support for the organization while providing for your current financial needs. Learn more about the process, and the variety of charitable programs you can benefit, at Clicking on “Learn more” will bring up an “E-newsletter” button, where you can sign up for regular information from Planned Giving.