Life Insurance: Important Reminders

Make Children's the owner, not just the beneficiary

• It is important that you name Children's Hospital as the irrevocable owner of the policy and not just its beneficiary. If you retain ownership of the policy, the IRS will not allow a deduction for your gift, and will not permit you to deduct your premium payments, even though you are making them on our behalf.

Know the status of your policy

• If you have borrowed against a life insurance policy, a gift of the policy with the loan still outstanding will create taxable income for you in the amount of the loan balance.