Gifts of Life Insurance
Life insurance offers a donor the opportunity to make a generous gift to the Seminary with a relatively modest financial outlay, if any, at the time. In addition to providing for the Seminary, a gift of life insurance can result in substantial tax savings for the donor. Those making gifts of life insurance will also be invited to join the Legacy Society.
When the Seminary is named both the owner and beneficiary of an existing paid-up policy, benefits to the donor include:
- an income-tax charitable deduction in the year of the gift (ordinarily the cost of replacing the policy at the donor’s present age and physical condition), with carryover privileges for up to five additional years
- removal of the policy's full face value from the donor's estate
If the policy is not fully paid up, these benefits to the donor apply.
- an income tax charitable deduction of approximately the amount of the policy’s cash surrender value at time of gift, with carryover privileges as above
- a further charitable deduction, in the amount paid, each year the donor elects to pay premiums on the policy
- removal of the policy’s full face value from the donor’s estate
Life insurance policies are regulated by state laws. Those laws can affect the deductibility of such gifts for federal income tax purposes. Donors should consult their legal/financial advisors in this regard.
For more detailed information about gifts of life insurance or any other planned giving opportunity offered by the Seminary, please contact the Director of Planned Giving, John S. McAnlis.