Paid Insurance Policies

Life insurance can produce a significant gift from relatively small premiums.

Examples

1. Joe Alum has a $50,000 life insurance policy that is fully paid up. By naming PLU the irrevocable owner and beneficiary of the policy he will receive an income tax deduction equal to the cash value of the policy.
2. Mary Alum purchases a new life insurance policy naming PLU as irrevocable owner and beneficiary.  She is entitled to receive income tax deductions on gifts made to PLU that are designated for premium payments.
3. Bill and Jane Alums have a life insurance policy on which they still owe premiums. They name PLU as irrevocable owner and beneficiary and they receive an income tax deduction equal to the cash value of the policy, and they will receive an income tax deduction for any additional gifts toward premium payments.