When you first obtained your life insurance policies, you obviously felt a need for them. But perhaps you don’t need all that coverage today, yet you still have those policies.
If you are thinking about a contribution to the College, a gift of your life insurance could be a sensible as well as generous course of action.
- Charitable deduction when you name the College as the beneficiary and owner of the policy.
- Flexibility through naming the College as the beneficiary but keeping ownership.
- Security for your family by naming the College contingent beneficiary.
- Reduction in estate taxes because proceeds are removed from your estate.
You can also use life insurance to replace the value of a different gift. For example, you could contribute stock to the College because of the tax advantages and purchase life insurance to benefit your heirs in the amount they would have received had you left them the stock.