A gift of life insurance could be right for you if:

  • Your life insurance policy is paid up or has substantial cash value.
  • You have no loan outstanding against the policy.
  • Your family is well-provided for by other means.
  • You would like to make a generous gift to Baylor Scott & White Health.

How it works

Option 1:  You give your policy to BSW Dallas Foundation.

As the policy owner, BSW Dallas Foundation will either cash in your policy and use the proceeds, or maintain the policy until it ends and then receive its face amount. Your benefits will include:

  • An immediate income tax charitable deduction for the cash surrender value of your policy.
  • No change in your cash flow.
  • The satisfaction of making a generous gift to BSW Dallas Foundation.

Option 2:  You designate Baylor Scott & White Dallas Foundation as a beneficiary of your policy. 

When your policy ends, BSW Dallas Foundation will receive some or all of your policy's death benefit, as you have designated. Your benefits will include:

  • The death benefit of your policy will not be included in your estate, which may save estate tax if your estate exceeds the applicable exemption amount.
  • No change in your cash flow.
  • The satisfaction of making a generous gift to Baylor Scott & White Health.

This option offers the additional benefit that you can change your mind about your gift at any time should circumstances in your life change. 

Read More on Gifts of Life InsuranceRead Less on Gifts of Life Insurance

Your life insurance may have a new purpose to serve

You may have purchased a life insurance policy years ago when you wanted to protect your family from financial hardship in case of your untimely passing. Now that your children are grown and independent, your mortgage is paid off, and you have accumulated sufficient assets in your estate to pass on to your family, you may no longer need your life insurance policy for its financial protection.

If this is your situation, consider making a gift of your life insurance policy to Baylor Scott & White Dallas Foundation. The value of your policy can provide generous support to our mission without affecting your cash flow.

Give a paid-up life insurance policy

A paid-up life insurance policy is a policy that will stay in force without any additional premium payments. A paid-up life insurance policy is a valuable asset and makes an excellent gift. 

When you give your paid-up insurance policy to us, we will either cash in the policy immediately and use the proceeds, or maintain the policy until maturity and receive the death benefit of the policy.

Because this kind of gift is irrevocable, you will receive an income tax charitable deduction for the value of your gift at the time you transfer your policy to us, providing tax savings if you itemize. You will also remove your insurance from your estate, potentially saving estate taxes, as well.

In order to make your gift, you must assign BSW Dallas Foundation all ownership rights to your policy and make BSW Dallas Foundation the irrevocable designated beneficiary of the policy. Usually this can be accomplished by completing a simple form from your insurance provider. Be sure to identify us as: Baylor Scott & White Dallas Foundation, 3600 Gaston Avenue Barnett Tower, Suite 100 Dallas, Texas 75246-1800, Federal Tax Identification Number: 75-1606705

Make BSW Dallas Foundation a designated beneficiary of your policy

Another great way to make a gift to us with your life insurance policy is to make BSW Dallas Foundation a designated beneficiary of your policy. When your insurance reaches maturity, we will receive the amount or proportion you designate. You can change your designation at any time, giving you the flexibility to revise your gift for any reason.

Because your gift is revocable, you do not receive an income tax charitable deduction at the time you create the designation. Rather, your estate will receive an estate tax deduction for the amount your insurance policy distributes to us if your estate is subject to tax.

It is very easy to make BSW Dallas Foundation a designated beneficiary of your life insurance policy. Simply contact your insurance agent to make a change on your policy's beneficiary designation form. Be sure to identify us as: Baylor Scott & White Dallas Foundation, 3600 Gaston Avenue Barnett Tower, Suite 100 Dallas, Texas 75246-1800, Federal Tax Identification Number: 75-1606705

Loan against policy will create taxable income

If you give a life insurance policy on which you have an outstanding unpaid loan, you will be considered to have sold your policy for the amount of the unpaid loan. As a result, you will have to declare a portion of the loan as taxable income. You may want to pay off your loan prior to making your gift in this case.  

If you plan to designate BSW Dallas Foundation as a revocable beneficiary of your policy, the existence of an unpaid loan against your policy will not affect your tax picture.

Example

Harold Putnam bought a $250,000 life insurance policy on his life in 1965 after the birth of his and Leah’s two children.  The policy has been paid up for years and the couple agreed their children, now in their mid-50s, are well-off financially and no longer need the financial protection the policy provides.  The cash value of the policy is over $90,000 and Harold has paid $75,000 in premiums.

Leah has survived two bouts of cancer and is thriving.  The couple want to make a significant gift to breast cancer research at Baylor Scott & White Health (BSW) in honor of Leah’s oncologist but are reluctant to use their liquid assets at this time.  When they learned they could donate the policy to BSW Dallas Foundation and receive an income tax deduction for the cash-surrender value of the policy, they were delighted.

Harold worked with the gift planning staff at the Foundation who helped him complete the gift.  The Putnams are grateful they can leave this legacy to BSW to help future cancer patients.

Benefits

  • Harold will earn an immediate income tax charitable deduction of approximately $90,000, providing tax savings if he itemizes.
  • His $250,000 death benefit will not be included in his estate.
  • He and Leah have the satisfaction of making a generous gift to Baylor Scott & White Dallas Foundation without reducing their income level.
  • As the policy owner, BSW Dallas Foundation can either cash in the policy and have over $90,000 to work with immediately, or hold the policy and receive $250,000 as a legacy gift from the Putnams.