A gift of life insurance that you no longer need can be an easy way for you to provide generous support to Hebrew Congregation of St. Thomas.

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 St. Thomas Synagogue.

How It Works:

Option 1: You give your policy to St. Thomas Synagogue.

As the policy owner, St. Thomas Synagogue 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 value of your policy.
  • No change in your cash flow.
  • The satisfaction of making a generous gift to St. Thomas Synagogue.

Option 2: You designate Hebrew Congregation of St. Thomas as a beneficiary of your policy.

When your policy ends, St. Thomas Synagogue 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 St. Thomas Synagogue.

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

How Your Gift Helps

Your gifts to the Hebrew Congregation of St. Thomas helps continue our mission to provide a community of   faith in which each member can find support, strength, courage, and hope. It will provide Hebrew Congregation with the resources to…

 

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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 Hebrew Congregation of St. Thomas. 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 St. Thomas Synagogue all ownership rights to your policy and make St. Thomas Synagogue 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: Hebrew Congregation of St. Thomas, Inc, 2116 Crystal Gade, St. Thomas, VI 00802, Federal Tax Identification Number: 67-0251194

Make St. Thomas Synagogue a Designated Beneficiary of Your Policy

Another great way to make a gift to us with your life insurance policy is to make St. Thomas Synagogue 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 St. Thomas Synagogue 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: Hebrew Congregation of St. Thomas, Inc, 2116 Crystal Gade, St. Thomas, VI 00802, Federal Tax Identification Number: 67-0251194

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 St. Thomas Synagogue as a revocable beneficiary of your policy, the existence of an unpaid loan against your policy will not affect your tax picture.

A Few States will not Allow You to Give Life Insurance 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.

Example

Alma Moss bought a $250,000 life insurance policy on her own life shortly after the birth of the first of her four children. Her policy has been paid-up for years and her children, who are now in their 40s and 50s, no longer need the financial protection the policy provides. The cash value of her policy is now over $90,000, and she's paid $75,000 in premiums.

Moss has enjoyed a relationship of many years with St. Thomas Synagogue, and would like to honor their relationship with a significant gift. However, she has been reluctant to use her liquid assets to make the gift. When Moss learns that her policy can be put to a new and productive use, she is delighted. She arranges with her insurance agent to donate her policy.

Benefits

  • Alma’s gift will entitle her to an income tax charitable deduction that could save income taxes if she itemizes. The terms of the insurance policy and applicable tax law will determine the size of her deduction. In this example, the likely deduction is $90,000 but Alma would need a qualified independent appraisal to document her deduction.
  • Her $250,000 death benefit will not be included in her estate.
  • She has the satisfaction of making a generous gift to Hebrew Congregation of St. Thomas without reducing her income level.
  • As the policy owner, St. Thomas Synagogue 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 Moss.