Up Close: The Why and How of Giving

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 to the college in light of my historical giving, and also establish a period of time over which I felt I would be able to make a contribution to the college equal to or greater than the policy premium. I have 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 full death benefit amount, without having to pay premium beyond the date of my death. AssumIng I am alive during the 10 year premium payment period, after 10 years, the policy is completely paid for, and the College incurs no further premium obligation. The policy will continue in force until the time of my death, at which time the benefit is paid.

Centre and I worked together to apply for a policy that met the criteria described above. As owner of the policy, Centre is obligated to pay the premiums; however, I will endeavor to continue my annual giving to Centre in an amount equal to or greater than the established premium. Centre can choose to apply my annual gift to fund the premium due or for any other purpose.

How Centre Benefits
Centre will receive a deferred gift I have established, funded by the College in an amount I am comfortable giving to Centre as an annual gift over a fixed period of time, in this case 10 years. If I die earlier, the College still gets the same full death benefit amount, yet pays less premium. If I survive the full premium payment period, the policy will be completely paid for. Ultimately, an amount no less than four times the total amount of the premium that would be paid over 10 years will be paid to Centre. In addition, in the event that I become disabled or otherwise unable to make an annual contribution to the college, 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 deferred gift that will be a multiple of the amount I will endeavor to give over a ten year period.

In addition, I have chosen to fund my annual giving amount to Centre with appreciated securities which have increased in value over time. As a result, I get a charitable gift income tax deduction for the full appreciated value of those securities at the time of the gift.

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 Justin Ewing, J.D. at (859) 238-5522 or justin.ewing@centre.edu to see if giving life insurance is the right choice for you.