Life Insurance Options
is a meaningful way to create a legacy and to save lives.
Gifts of Life Insurance
There are basically two ways you may make a gift of life insurance to Scripps Health:
1. Beneficiary Designations (distributions for post death).
The gift of a life insurance policy to Scripps Health (which will take effect after an individual's death) is completed by the owner of the policy completing, signing and processing a Beneficiary Designation Form or a Change of Beneficiary Form with the life insurance company. You may designate one or more "primary" beneficiaries as well as "alternate" or "contingent" beneficiaries.
These forms can usually be found online at the insurance company's website, through the insurance broker who sold you the policy, or by calling the insurance company directly. Whether you realize it or not, you most likely designated a beneficiary when you purchased the life insurance policy or when you first went to work for your employer. This designation must be completed while the insured is alive. The designation may be changed at any time unless the owner has made an irrevocable designation of the policy or is under a court order to name a particular beneficiary (such as a child or spouse).
After the insured individual passes away, the proceeds of the Life Insurance Policy are distributed directly to the "designated beneficiary" by the insurance company according to the insurance company's records. The most current beneficiary designation will control the distribution of the proceeds of the policy. Probate proceedings and trust administration are not required.
The estate receives a charitable estate tax deduction for the amount of the life insurance which essentially means that the life insurance is not included in your estate for estate tax purposes.
Many times, owners forget to update their life insurance beneficiary designations after a beneficiary passes away. If the designated beneficiary (and alternates) predeceases the owner/insured, then the life insurance policy must be distributed through the default provisions of the laws of the state where the owner resided at the time of his or her death. Sometimes, this requires probate proceedings if the policy is valued over $150,000. It is important to review your life insurance policy beneficiary designations on a regular basis to make sure they are the way you want them. Please consider designating Scripps Health as the beneficiary of your life insurance policy.
Beneficiary Designations are easy. Here's how to complete the gift of a life insurance policy to Scripps Health.
__ Step 1. Order a Beneficiary Designation Form from your life insurance company administrator.
__ Step 2. Complete the form and include our corporate name of Scripps Health as beneficiary of part or all of your policy.
Our tax ID number is 95-1684089, our address is P.O. Box 2669, La Jolla, CA 92038-2669
our phone number is 858-678-7120
__ Step 3. Sign, date and send or deliver the form to the life insurance company administrator for processing.
You should receive written confirmation that your insurance company administrator has accepted the Beneficiary Designation Form and has updated their records. You should place this confirmation with the rest of your estate planning documents and in your life insurance policy file. If you haven't received confirmation of acceptance of the Beneficiary Designation Form within 30 days, you should follow up with the insurance company. The Beneficiary Designation may not be complete until it has been received and processed by the insurance company.
2. Gift of Life Insurance Policy to Scripps Health during your Lifetime
Benefits of Gifts of Life Insurance
- Receive an income tax deduction for assigning ownership of a policy to Scripps Health.
- Options are available to donate paid up policies and policies that require premium payments.
- If you already have a policy in place, you make Scripps Health the owner of the policy simply by signing an assignment form available from your insurance agent or company.
Another way to benefit Scripps Health through life insurance is to consider life insurance as part of a Wealth Replacement Plan
- Gift other tax-sensitive assets to Scripps Health and purchase a life insurance policy to benefit your family.
The information on this page is not intended as legal, tax or financial advice. All donors should consult their own professional advisors about the consequences of any gift as it relates to their personal situation.
