Gifts of Life Insurance

If you are carrying more insurance coverage than you need consider giving Columbia a paid-up policy. If you transfer all rights and incidents of ownership of your policy to Columbia, you get a charitable income tax deduction equal to the policy’s cash surrender value or cost basis, whichever is less. The insurance policy must be whole life, not term insurance. The value of your gift for gift-crediting purposes will be the cash surrender value of your policy on the date of transfer. Columbia can cash in any policy it owns at any time.

Of course, you could also designate Columbia as the revocable beneficiary of a life insurance policy at any time. That will not, however, provide you with any immediate tax benefits.

N.B.: Consult legal and tax advisors before making any decisions based on this information.

For More Information

If you are considering a gift of life insurance, e-mail us, complete the personal illustration form, or call us at
800-338-3294.