While a direct donation can provide valuable tax deductions for an individual, there are other ways to support Chesapeake Bay Academy such as gifting your whole life insurance policy. Policy donations provide a much greater benefit to you as well as CBA.
Gifting a life insurance policy can reduce your taxable estate, which can save thousands of dollars in estate taxes for upper-income taxpayers. Donating a policy can also yield a current income tax deduction of the policy’s fair market value—a significant deduction in some cases. Perhaps most importantly, CBA will receive the entire face value of the policy upon the death of the insured. Naming Chesapeake Bay Academy as the beneficiary of your life insurance policy is a simple process. We recommend that you consult your insurance agent for information.
By either gifting a policy outright or naming CBA as a beneficiary, you can provide CBA with a gift that will provide a lasting legacy that will help students for many years.
Example: Mr. & Mrs. Smith purchased a $250,000 whole life insurance to cover the education of their two children should something happen to either of them. Both children have graduated from college. Now that the children have careers and are living independently, Mr. & Mrs. Smith have asked their insurance agent to add Chesapeake Bay Academy as a beneficiary of $50,000 from their life insurance policy. Mr. & Mrs. Smith are grateful to CBA for the education their youngest child received, especially because before enrolling their child, the parents were told he might not graduate from high school. Mr. & Mrs. Smith did not have the means to give such a leadership gift until now.