Probably not. Although the face value of the policy is larger than any cash value within the policy, THE ASSOCIATED likely will surrender any policy that goes into default for nonpayment of premiums rather than apply non-budgeted unrestricted funds to cover the premiums due. THE ASSOCIATED will apply the proceeds from surrender to the purposes you’ve designated.

THE ASSOCIATED may accept a term policy. Keep in mind, however, that while premiums for term policies are a fraction of those required for whole life policies, term policies never build up internal cash value. This means that if you stop making gifts to cover the premium payments, or if the term policy expires naturally, THE ASSOCIATED will not benefit from the policy or your many premium payments.

If you have just purchased a new whole life policy, it is unlikely that the policy will have any internal value at the time you contribute it to THE ASSOCIATED. That means that the policy will not have a current value on which to base a charitable deduction. If you have already made initial premium payments, however, there may be a value on which a deduction can be based. Your life insurance company and accountant can help you determine whether the policy has a value that will allow you to claim a tax deduction. There is no deduction for a contribution of a term policy.

A gift of a new policy is irrevocable, and THE ASSOCIATED will not be able to give the policy back to you once you’ve made your gift. Thus, it’s important to consider possible future needs before deciding to contribute your policy to THE ASSOCIATED.