Planned Giving: Life Insurance

There are two beneficial and easy ways that you can use life insurance to fund your giving. If you have a paid-up (or cash value) life insurance policy that is no longer needed for its intended purpose (e.g., your children are grown, your spouse has predeceased you, or tax laws have changed), you can give the policy to the Foundation. The policy will be cashed in, and the proceeds can be used immediately to create any type of fund. Life insurance can also be made part of your estate planning by naming the Foundation as a partial and/or contingent beneficiary of an insurance policy's death benefit. If one or more of the primary beneficiaries predecease you, their share can go directly into a fund established at the Foundation.


When you make an immediate gift of a life insurance policy, you may claim an income tax deduction based on the policy's current value or cost basis as determined by a financial advisor. The Foundation can either cash in the policy and place proceeds directly into a permanent fund or trust, or your can make tax-deductible premium payments to the Foundation as the new owner of the policy.

Estate taxes are reduced since the value of the policy is removed from your estate.

Naming the Foundation as the beneficiary or contingent beneficiary of a life insurance policy enables you to protect loved ones while providing for the causes you care about, even if the policy's beneficiaries predecease you.

An unneeded asset is removed from your estate, without affecting your income.

Other Planned Giving Options

Bequest | Charitable Remainder Trust | Charitable Lead Trust | Retained Life Estate | Retirement Plan

Get Started Today

To learn more about the Community Foundation of NC East and its impact to our region and local communities, or to get started on your planned giving, simply contact us at 252-756-8549 to speak with our Chief Executive Officer, Melissa Spain.