Up Close: The Why and How of Giving
Daryll Martin '78 on Why Life Insurance Was the Right Choice for Him
What I Did
It was easy for me to arrange for the College to purchase a life insurance policy. I was able to determine the amount that I was comfortable paying and the period of time to make the payments. Centre and I worked together to apply for a policy that met those criteria. The policy will continue in force after the last premium payment is paid, until the time of my death. As owner of the policy, Centre is obligated to pay the premiums, but I have agreed to make a gift to Centre every year for 10 years equivalent to the premium amount.
How Centre Benefits
Centre will receive a deferred gift in an amount no less than four times the amount of the premium paid. In addition, in the event that I become disabled or otherwise unable to meet my pledge obligation, Centre, as owner of the policy, has the right to make the premium payment out of other fund sources, thereby keeping the policy in force, and still recognizing the benefit at the time of my death.
Benefits to My Family
Without interfering with any other life insurance arrangements I have for my family, I have been able to provide Centre with a gift that will be a multiple of the amount I have promised to give, albeit deferred. I established an amount I am comfortable giving over a fixed period of time, in this case 10 years. If I die earlier, the College still gets the same benefit. After meeting my pledge obligation in 10 years, the policy is completely paid for, no further premium is due, and, upon my death, Centre receives the full policy proceeds.
In addition, I have chosen to fund the pledge used to pay the premium with appreciated securities, whereby I get the full amount of the charitable gift income tax deduction for the pledge amount on securities, which have appreciated in value over time.
Other Life Insurance Options to Consider
- Transferring ownership of a current life insurance policy to Centre
- Naming Centre as a beneficiary under a current life insurance policy
Contact Jamey Leahey '92 at (859) 238-5224 or firstname.lastname@example.org to see if giving life insurance is the right choice for you.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.