Life Insurance Policy

Sometimes people find themselves with life insurance policies they no longer need after the death of a spouse or after children are grown. By contributing such a policy to Smile Train, you can make a wonderful gift and reduce taxes that may otherwise be due upon your death.

You can also receive a charitable income-tax deduction for the cash surrender value of the policy when you irrevocably assign the policy to Smile Train. Be sure to use our legal name and address as follows:

Smile Train
633 Third Avenue, 9th Floor
New York, NY 10017

Gifts of Percentage Interest in a Policy
You might choose to designate Smile Train to receive only a partial interest (e.g., a percentage) of a life insurance policy.

Gifts of New or Partial-Paid Policies
You may also assign a partially paid policy to Smile Train and keep the policy active by sending premium payments to Smile Train. Or you may purchase a new policy and name Smile Train as owner and irrevocable beneficiary. All of your payments would be tax deductible if you itemize.

Gifts That Save Capital Gain
Gifts of securities can be used to cover the payments on a new or partially paid life insurance policy, with Smile Train named as a beneficiary. By donating securities, capital-gain tax can be eliminated entirely.

Insurance Dividends
The dividends of a whole life insurance policy may be designated to Smile Train without reducing the death value of the policy for your beneficiaries. The donor, who remains the owner of the policy, retains the right to borrow against the policy.

Naming Smile Train as Beneficiary
Another option is to name Smile Train as the primary beneficiary or co-beneficiary of a life insurance policy. You would retain ownership of the policy and have access to the policy’s cash value. Because you retain ownership, no charitable income-tax deduction is allowed at the time of the gift. Although the face value of the policy will be included in your gross estate at your death, your estate will be entitled to an offsetting charitable estate-tax deduction.

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