Some benefactors make a gift of new, paid-up policies or existing ones that are no longer needed.
A gift of existing life insurance that you own may be completed by assigning ownership and delivering the policy to Penn State. You would receive an immediate income tax charitable deduction for the current value of such a policy. Penn State must be the owner of any policy if you wish to receive an income tax charitable deduction. If you give Penn State a policy that is not fully paid-up, you receive additional charitable deductions for your annual premium payments as you continue to make them. Although there are no lifetime tax benefits in doing so, you also may designate Penn State as beneficiary of insurance you own, or have through your employment.