Terminated Life Insurance Policies

Kim Rapp

We have a life insurance policy on a donor that we own and chose to terminate and take the cash value. Since it is not an additional gift from the donor we were thinking of setting up a constituent record for Surrendered Life Insurance Policies to record the cash surrender value.  Has anyone else done this?

Chris Nungesser

Hi Kim Rapp‍,


I haven't done that and I'm not familiar with the financial tracking rules around insurance policies. One thought I have, though, is whether you would want to create a constituent record for the Surrendered Policies. I think you may want the constituent to be the source of the money (so the insurance company on the check you received). Perhaps "Surrendered Policies" could be an Appeal, assuming you're using Raiser's Edge. I'm not sure what the field might be called in other systems, but I think I'd track the Surrendered Policies in the fund hierarchy and not as a constituent. Hope that helps.


Chris 

Crystal Bruce

Discussion moved to Raiser's Edge. Thanks!

Kim Rapp

Chris,

Thank you for your response.  Your suggestion makes sense to me that the constituent should be the insurance company and I should use an appeal for the surrendered policies.


Kim