Many of our friends have life insurance policies that are no longer needed for their security or that of their families. A good example might be a policy acquired to assure a child’s education, when the child is now out of school.
When an existing policy is given to us, the owner may be able to deduct, as a charitable contribution, the current value of the policy (or the net cost of the policy if this is less than current value). Future premium payments are also deductible after ownership has been transferred to charity.
