FAQs

» Who is LifePoint?
LifePoint Charitable Endowment, Inc. is a 501 (c)(3) public charity that is uniquely structured to accept and manage tax-deductable donations of unwanted or unneeded life insurance policies for the benefit of donor-designated charities.

» Why should I donate my policy to LifePoint instead of directly to my charity?
Most charities refuse to accept direct donations of life insurance when they must commit to pay premiums over the insured's remaining lifetime. Paying premiums represents an administrative burden and an unpredictable future premium obligation for the charity. LifePoint alleviates all of these concerns by assuming responsibility for the ongoing administration and premium payments on behalf of the charity.

» Why do people donate their life insurance policies?
There are many reasons why charitably inclined seniors would consider donating their unneeded life insurance to the LifePoint Charitable Endowment:

  • The Donor may be passionate about a charitable work and desire to leave a legacy,
  • LifePoint may represent the best and possibly only opportunity to make a large gift to significantly impact charitable endeavors,
  • The donor may have outlived the original purpose of the policy and desire to use it to benefit charity,
  • The donor may simply want to stop paying premiums,
  • The donor may have changing estate planning needs,
  • The donor may have underperforming policies and considering lapse,
  • The donor may wish to honor the death of a spouse or beneficiary.

» Is it legal to change the ownership of my policy?
Transferring the ownership of a life insurance policy dates back to 1911 when the U.S. Supreme Court ruled in Grigsby v Russell that life insurance is an asset like any other asset and was freely transferable. In addition, every policy has a special contractual provision that states that the owner of the policy has the right to transfer ownership of the policy to someone else.

» What charities can I designate to benefit from my policy?
You can designate almost any charity in the humanitarian, health science, Christian ministry, or education charitable sectors.
Humanitarian - Charities that provide hunger, medical and crisis relief to the poor, needy and hurting people of the world.
Health Sciences - Charities that provide compassionate healthcare and improved quality of life for the sick, and support the search for cures through medical research.
Christian Ministry - Organizations that fulfill the Great Commission by training, education, discipleship and evangelism.
Education - Universities, private colleges and schools, and other educational organizations can benefit from the support of alumni, members, and others who share a commitment to quality education at all levels.

» What types of policies will LifePoint accept?
LifePoint will accept almost any type of policy. However, we will review each policy to make sure it qualifies.

» Who will pay the premium on my policy?
LifePoint assumes full responsibility to pay all future premiums on your donated life insurance policy.

» Is the donation of my policy income tax-deductable?
Yes, the general rule is that your income tax deduction will be equal to the policy cash value. However, your income tax deduction may be limited by your personal income status.

» Is the donation process complicated and how long does it take?
The donation process is very simple. However, LifePoint has intentionally slowed down the process because we want you to be informed and feel comfortable with your decision every step of the way. Most policy donations are completed within 4 - 6 weeks.

» What if I cannot find my policy?
The actual policy is not required to make a policy donation. However, you will need to know the company name and policy number. After the donation LifePoint may request a duplicate policy.

» Can I name more than one charity to benefit from my policy?
Yes, you may name as many charities as you wish to benefit from your policy donation to LifePoint. Simply tell us what percentage of the policy should be assigned to each charity.

» How will my charity know I made a policy donation to LifePoint for their benefit?
When the policy donation is complete, LifePoint will notify your charity(s) that you have made a policy donation on their behalf. Each named charity will acknowledge your generous gift.

» Can I change my mind?
You can change your mind at anytime during the donation process, as long as it is before the final policy ownership change by the life insurance company.

» Who can I call if I have other questions?
Feel free to call any representative at LifePoint between 9:00 am - 5:00 pm CDT if you have more questions. The telephone number is (877) 808-1818.