From www.taylor.edu - Taylor University, integrating faith and learning

Life Insurance

1952 Class ReunionMake Taylor University the owner and/or beneficiary of your life insurance policy.

A potential donor can make Taylor University the beneficiary of an existing life insurance policy. The policy can be any type of insurance - term, whole life, universal life, etc. Taylor can be the primary beneficiary and the proceeds of the policy will be paid immediately upon the death of the donor. You can also make Taylor the secondary beneficiary. Then Taylor will receive the proceeds if the person(s) named as primary beneficiary(ies) have predeceased the donor. Beneficiary designations can be shared so that a charity can receive a percent of the proceeds, shared with other named beneficiaries.

By making a charity like Taylor University the irrevocable owner and the beneficiary of a life insurance policy, the annual premiums will become charitable deductions for the donor. This can be done with an existing policy or when purchasing a new policy.  If you have a paid-up policy that has current cash value, you can take a current deduction for the cash surrender value of the policy by transferring the ownership and beneficiary designation to the charity. See your income tax advisor for specific details.

"Wealth replacement" insurance is another common way to use life insurance in charitable giving. The usual arrangement is for donors to purchase a life insurance policy with their children as beneficiaries when they have made a transfer of cash or real property to a charity through a charitable gift annuity or a charitable remainder unitrust. The income from the gift annuity or unitrust is used to pay the premiums on the insurance. That allows the donors to make a significant donation without reducing the amount that is passed on to the children.