In addition, one is allowed a tax deduction in the year that the gift is made for that part of the gift that might be expected to ultimately benefit the College. One of the most overlooked and underutilized instruments in financial planning and in charitable giving is permanent life insurance. The most common reason for purchasing life insurance is to protect the standard of living to which one s family has become accustomed. Life insurance protects a family against the greatest possible financial tragedy the death of a breadwinner. In most instances time passes and the vulnerability that necessitated coverage in the beginning is no longer present.
Children grow up and become educated and independent.
If one has an old policy that is no longer needed, it can constitute a marvelous gift to William Jewell College and become an expression of thanksgiving for the blessing of good health and long life. That gift also brings a tax deduction for the amount of cash value in the policy, and if in assigning ownership to the College one continues to pay the premium, then each year one also may take a tax deduction based on the amount of premium paid. Some have chosen to purchase a new policy with the College as owner and beneficiary. Younger alumni find this to be an affordable way to provide a gift in the future that is not feasible at present. Again, the premium is tax deductible.