Gifts of Life Insurance:

The Details

Donate a policy, take a deduction, deduct future premium payments, if any, and make a philanthropic gift. You will also get the proceeds out of your taxable estate.

Your financial projections may indicate that you will not accumulate large blocks of capital during your lifetime, or that you wish for your family to receive the majority of your estate. You want to make a significant gift to Johns Hopkins, but wonder if you will find the resources to do so.

Life insurance uses manageable payments made from income — the premiums — to create a large future gift for Johns Hopkins.  You can build our long-term financial strength without diminishing your own.

New Policy

Make the gift by taking out a new policy on your life, naming Johns Hopkins the irrevocable owner as well as beneficiary (this arrangement makes the gift complete in the eyes of the IRS).  We will receive the premium notices, and you will make annual donations to offset our payments.  These gifts will, of course, be tax-deductible.  There is no deduction for setting up the policy itself.

Existing Policy

Besides creating a new life insurance policy, you can also donate an existing policy.  This gift will generate an initial tax deduction: the lesser of the policy's fair market value — we can guide you in determining this — or the total of your net premium payments.  If premiums are still payable, we will ask you to make tax-deductible contributions offsetting our payment of those premiums.  We do reserve the right to keep such a policy in force during your lifetime, or to terminate it sooner for its cash-surrender value.

Is this gift right for you?

A gift of life insurance is for you if…

  • You are a younger donor who wants to make a significant gift.
  • Your estate probably will not have substantial assets to distribute to non-family members.
  • You can make a commitment to provide gifts that will offset our premium payments on the policy.