Ann Arbor Area Community Foundation

Planned Giving: Life Insurance

Life insurance enables donors to make a much larger charitable gift than they thought possible.

People purchase life insurance to provide financial protection for their family, business or estate. Later in life, donors may find that they do not require as much insurance and may find it desirable to use insurance policies for charitable giving.  In most cases a gift of life insurance does not significantly reduce a donor's current income stream.

By assigning a Life Insurance Policy to AAACF, donors can support the causes they care about with a gift that will give forward for future generations - For good. For ever.

Donors may -

  • Name AAACF as the owner and beneficiary of an existing policy that is no longer needed.
  • Retain ownership of an existing policy, but name AAACF as the primary or sole beneficiary.
  • Retain ownership of an existing policy, but name AAACF as a secondary or successor beneficiary - in the case of the prior death(s) of any primary beneficiaries, usually family members.
  • Purchase a new life insurance policy and name AAACF as the owner and beneficiary.

When transferring ownership of a life insurance policy, donors are entitled to a federal income tax deduction for the cash surrender value of the life insurance policy in the year the gift is made.

Donors may establish any type of endowed fund at AAACF with an insurance policy, provided minimum fund requirements are met.

We are happy to work with donors and their professional advisors to arrange a gift of life insurance.  To learn more or to arrange a gift,
please contact AAACF CFO Doug Weber.