In many cases, giving through life insurance enables donors to give far more, at less cost, than would be possible otherwise - often with significant tax advantages. When you donate through life insurance, you can give the University access to the policy’s cash value during your lifetime, and make a substantial gift later on in the form of the policy’s death benefit.

Giving through life insurance can be an excellent strategy for young people, whose insurance premium costs are generally low. It can also be an effective option for older people who have existing policies and little need for life insurance.

How giving through insurance works

You can choose to buy a policy and name the University the owner and beneficiary; donate an existing policy; or make your estate the beneficiary of your policy and leave the proceeds to the University in your will.

Buying a policy

When you buy an insurance policy and name the University the owner and beneficiary, you can take advantage of immediate tax relief. You provide the University with a gift each year to cover the premium costs, and you receive a tax-creditable receipt for this amount.

Donate an existing policy

You can donate an existing life insurance policy to the University, and receive a tax-creditable receipt for your gift for the premium costs each year. If the policy is paid up, you will receive a receipt for a portion of the policy’s cash value. To donate an existing policy, you will need to change the beneficiary to the University, and you may require the approval of the original beneficiary.

Donate insurance benefits through your estate

You can name your estate the beneficiary of your policy, and leave the proceeds to the University in your will. Your estate then receives a tax-creditable receipt for your donation. Using this strategy, however, means that your donation could be subject to probate fees.