LIFE INSURANCE.

Life insurance provides security for a growing family and support in times of need. It can also be used to make a gift to Village Theatre. Options include naming Village Theatre as the beneficiary of the death benefit or transferring ownership of an existing policy to Village Theatre. There are several ways that you may make charitable gifts of life insurance policies.

NAME VILLAGE THEATRE AS A BENEFICIARY

This may be a good option if the existing beneficiaries of a policy have preceded you in death, or if you have beneficiaries for whom you have provided through other life insurance policies or assets. (The proceeds from group insurance as well as individually owned insurance can be given to Village Theatre.) This designation can be changed if your circumstances change in the future. Any proceeds paid to Village Theatre will qualify for any estate tax charitable deduction.

DONATE A POLICY THAT HAS BEEN PAID UP

Often, a person’s need for life insurance declines with age. A life insurance policy purchased years ago for family protection or to collateralize a loan may no longer be needed for that purpose. If so, ownership of the policy could be transferred to Village Theatre. Because the gift is irrevocable, you receive an immediate income tax deduction. By making a gift of this essentially “idle” asset, you will receive a deduction and reduce your taxes.

DONATE A NEW POLICY OR A PARTIALLY PAID POLICY

You may have a policy that you have owned for a while but is not paid-up. You can transfer ownership to Village Theatre and continue paying the premiums. You receive a deduction approximately equal to the policy's current value along with additional deductions for continued premium payments. Or you can take out a new policy and deduct the premium payments. This is a way to assure a major future gift to Village Theatre with minimal current financial outlay. There are several benefits to giving a gift through life insurance: