Life insurance is a tool with many purposes. Perhaps when your children were young, you purchased policies to provide them with financial protection. But if your situation has changed, you might be interested in one of the more satisfying uses for life insurance you no longer need—donating it to the University of Nebraska Foundation.
Cost Efficient
You can make a significant gift even if your means are limited today. By making small premium payments each year, you can leave a sizable gift.
Tax Beneficial
For existing policies, you may receive an income tax charitable deduction if you itemize. For a new policy, with the University of Nebraska Foundation as owner and beneficiary, premiums may be deductible.
Secure and Confidential
Life insurance is a contract and can’t be changed by heirs or accessed by creditors. If you make the University of Nebraska Foundation policy owner and beneficiary, it’s not included in probate and remains confidential.
Helpful to Our Mission
Life insurance gives you a low-cost option to make a gift, helping you to make a bigger impact on our work than you may have thought possible.
When you name the University of Nebraska Foundation as the policy owner and beneficiary, you qualify for a federal income tax charitable deduction for the lower of the policy’s fair market value or your cost basis. For paid-up insurance, the fair market value is the cost of replacing the coverage with a new policy issued today based on the current age of the insured at the same face amount as the original policy.
You may stipulate that you no longer wish to make premium payments, and the University of Nebraska Foundation will access the surrender value for immediate use for the purpose on campus that you have designated.
An alternative, however, may be even more attractive. The policy can remain in effect while you make annual tax-deductible gifts, which will be used to pay the premium. The gifts are deductible if you itemize, and the policy is thereby kept in force with pre-tax instead of after-tax dollars for a lower actual cost.
If you would rather retain ownership of a policy for your own financial security or that of others, you have the following options:
In most states, you can enter into a new insurance contract with a qualified organization, such as the University of Nebraska Foundation, as the beneficiary and owner of the policy.