If you are the owner of life insurance which has met its purpose or which is more than will be needed to provide financial security to you and your heirs, you can donate the life insurance to the University and receive a tax deduction for the cash value of the life insurance. In order to assess whether or not you hold life insurance which could be given to the University, please take a moment to review the Life Insurance Quiz. If you are the owner of a policy that is not fully paid up, you can donate the policy to the University, receive an income tax deduction for the cash value and, if you continue to pay the annual premiums, receive a charitable deduction for the premiums as well. Remember that the University must be endorsed as the Owner and Beneficiary of the life insurance policy before it can be assured that you will receive a tax benefit. You will have to endorse over the Policy benefits before it becomes a clear donation.
Insurance policies can grow to become substantial gifts.
If you are young or approaching middle age and you wish to set up a plan to become a substantial contributor to the University, contact us for more information about how you can grow a small investment into a substantial endowment. Paying annual premiums, which are tax deductible, may be more attractive to you than paying income taxes. If you are the owner of life insurance which meets the conditions noted in the second paragraph above and do not wish to give up ownership of your life insurance, you may elect to name the University as the primary or successor beneficiary in you life insurance. By so doing, you retain ownership and have access to the cash value of the life insurance. Although the face value of the life insurance will be included in your gross estate, no federal estate tax liability will result.