When people think about gift-giving, they usually imagine flowers, chocolates or maybe even a check tucked into a card. But what if you could give something that truly lasts a lifetime? Let’s explore how you can give the gift of life insurance.
Can I gift someone life insurance?
Yes! Gifting life insurance is a powerful way to show love, support, and long-term care for someone’s future. There are three main ways to give someone the gift of life insurance:
1. Buying a policy for someone else
You can take a policy on another person (such as a child, spouse, or grandchild), if you have an insurable interest. This means their life has a financial impact on yours. When you buy a policy for someone, you will be the owner and payer of the policy, and they will be the insured person. You can also name yourself, them, or someone else as a beneficiary.
2. Transfer ownership of an existing policy
You can also give life insurance by transferring ownership. This means you no longer control the policy, and the new owner becomes responsible for the premiums. This could be a good option for estate planning purposes or to give it to a loved one, so they have control over the policy.
3. Name a person or a charity as a beneficiary
You can also give life insurance proceeds by naming a loved one, trust, or nonprofit organization as the beneficiary. When you pass away, they’ll receive the death benefit tax-free in most cases. Whether it is to provide financial support for a family member or to leave a lasting impact through charitable giving, naming a beneficiary is a thoughtful way to ensure your legacy continues to support the people and causes that matter most to you.
When would you want to gift life insurance?
Gifting life insurance can make sense in several scenarios:
- Welcoming a new child or grandchild: A policy can build cash value over time and provide long-term security.
- Estate planning: Transfer wealth in a tax-advantaged way.
- Philanthropy: Support a cause you care about with a generous future gift.
- Leaving a legacy: Ensure your loved ones are taken care of long after you are gone.
What information will you need to give life insurance as a gift?
If you’re planning to buy a new policy for someone or transfer an existing one, you’ll generally need the following information:
- Full legal name of the insured
- Date of birth
- Social Security number
- Relationship to you
- Beneficiary details
Let’s talk
While life insurance might not come wrapped in a bow, it’s a gift that offers security, stability, and peace of mind. Contact one of our experienced Avery Hall agents for a free quote at 410-742-5111 for Salisbury, 410-822-7300 for Easton, 302-316-6565 for our Selbyville office.