Donating a life insurance policy (either paid up or one on which the donor is still paying premiums) that the donor no longer requires for its original purpose is a generous and convenient way to make a gift to a Masonic charity. The donor's income tax deduction is roughly equal to the cash surrender value of the policy.

In addition, some donors prefer to donate annually an amount equal to the premiums for life insurance. The designated Masonic Charity then takes out a new policy on the donor's life, naming the Masonic charity as the beneficiary. Income tax benefits can result from this gift which may provide for a larger gift than might otherwise be possible.

If a donor wishes to use life insurance to fund a life income plan - either now or in the future - one option is to invest the cash value of the life insurance policy in a charitable gift annuity.