A gift of a life insurance policy, that you no longer need, can be an easy way to provide generous support to The Seeing Eye.

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

  • Your life insurance policy is paid up or has substantial cash value.
  • You’ve provided for your family and loved ones by other means.
  • You would like to make a generous gift to The Seeing Eye.

Your life insurance may find a new purpose

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 The Seeing Eye. Your policy can provide generous support to our mission without affecting your cash flow.

How Your Gift Helps

Your gifts to The Seeing Eye help us enhance the independence, dignity, and self-confidence of blind people through the use of Seeing Eye dogs. It will provide us with the resources to…

Show more detailsHide details

How It Works

Option 1: Give your policy to The Seeing Eye

When The Seeing Eye becomes the owner of your policy we can cash it in and use the proceeds. Alternatively, if you continue to pay the premiums, we could maintain the policy until it ends and then receive the full death benefit amount. In addition to the satisfaction of making a generous gift to The Seeing Eye with no immediate cost, you will receive an immediate income tax charitable deduction for the value of your policy (or the total premiums you have paid, whichever is less) and an additional income tax deduction if you continue to pay premiums.

In order to make your gift, you must assign The Seeing Eye all ownership rights to your policy and make The Seeing Eye the irrevocable designated beneficiary of the policy. 

The life is the donors, but the charity owns the policy, and they get the beneficiary rights.

This can be easily accomplished by completing a simple form from your insurance company. Be sure to identify us as: The Seeing Eye, Inc., 1 Seeing Eye Way, Morristown, NJ 07960, Federal Tax Identification Number: 22-1539721.

Example

Bridget Lloyd bought a $250,000 life insurance policy on her own life shortly after the birth of the first of her four children. They are now in their 40s and 50s and no longer need the financial protection the policy provides. The cash value of her policy is now over $90,000, and she’s paid a total of $75,000 in premiums over the years.

Bridget has enjoyed a relationship of many years with The Seeing Eye, and would like to make a significant gift, but is reluctant to use her liquid assets. Bridget is delighted to learn that her insurance policy can be put to a new and productive use. She arranges with her insurance agent to donate her policy.

Benefits:

  • Bridget’s gift will entitle her to an income tax charitable deduction for the lesser of the value of the policy or the total premiums paid, $75,000 in this example.
  • She has the satisfaction of making a generous gift to The Seeing Eye without affecting her current income.
  • As the policy owner, The Seeing Eye can either cash in the policy and have $90,000 to work with immediately or, if Bridget continues to pay premiums, hold the policy and receive $250,000 as a legacy gift from Bridget.

Option 2: Designate The Seeing Eye as a beneficiary of your policy

You can designate The Seeing Eye to receive some or all of your policy’s death benefit but retain ownership of the policy. You will have the satisfaction of making a generous gift to The Seeing Eye with no immediate cost to you.

This option allows you to change your mind about your gift should circumstances in your life change. Because your gift is revocable, you do not receive an income tax charitable deduction for your gifts, but your estate will receive an estate tax deduction for the amount your policy distributes to us.

It is very easy to designate The Seeing Eye as a beneficiary of your life insurance policy. Simply contact your insurance agent to make a change in your policy’s beneficiary designation. Be sure to identify us as: The Seeing Eye, Inc., 1 Seeing Eye Way, Morristown, NJ 07960, Federal Tax Identification Number: 22-1539721.

Other considerations

Loans against your policy can create taxable income

If you give a life insurance policy on which you have an outstanding unpaid loan, you may have to declare a portion of the loan as taxable income. Check with your financial advisor; it may be best to pay off the loan prior to making your gift. If you plan to designate The Seeing Eye as a beneficiary of your policy (Option 2), an unpaid loan against your policy will not affect your tax picture.

Give a paid-up life insurance policy

Sometimes a life insurance policy may be “paid-up” which means it will stay active without any additional premium payments. A paid-up life insurance policy is a valuable asset and makes an excellent gift.

Some states do not allow you to give a life insurance policy to a charity

For your gift of life insurance to be valid, your state of residence must consider a charity to have an “insurable interest” in your policy. Most states do but verify that this is true in your state before you make your gift.