A gift of life insurance that you no longer need can be an easy way for you to provide generous support to St. Lawrence University.
A gift of life insurance could be right for you if:
Your life insurance policy is paid up or has substantial cash value.
You have no loan outstanding against the policy.
Your family is well-provided for by other means.
You would like to make a gift to St. Lawrence.
How it works
Option 1: You give your policy to St. Lawrence.
As the policy owner, St. Lawrence will either cash in your policy and use the proceeds, or maintain the policy until it ends and then receive its face amount. This gives you the satisfaction of making a generous gift to St. Lawrence while having the benefit of no change in your cash flow and saving taxes.
Option 2: You designate St. Lawrence University as a beneficiary of your policy.
When your policy ends, St. Lawrence will receive some or all of your policy's death benefit, as you have designated. This also gives you the satisfaction of making a generous gift to St. Lawrence while having the benefit of no change in your cash flow and saving taxes. Better yet, you also retain the ability to change your mind should circumstances in your life change. This is only found in Option 2.
How Your Gift Helps Your gifts to the University help to make it possible for current and future Laurentians to have the St. Lawrence experience through financial aid, as well as critical resources for new academic initiatives such as...
Providing the best possible education for today’s world...
Learning that occurs both inside and outside the classroom...
and improved infrastructure and learning technologies.
Because everyone’s situation is different, we encourage you to seek professional legal, estate planning, and financial advice before deciding on a course of action. This information does not constitute legal or financial advice and should not be relied upon as a substitute for professional advice.
Your life insurance may have a new purpose to serve You may have purchased a life insurance policy years ago when you wanted to protect your family from financial hardship in the unlikely case of untimely circumstances. Now that your children are grown and independent, your mortgage is paid off, and you have accumulated sufficient assets in your estate to pass on to your family, you may no longer need your life insurance policy for its financial protection.
If this is your situation, consider making a gift of your life insurance policy to St. Lawrence University. The value of your policy can provide generous support to our mission at no out-of-pocket cost to you.
Give a paid-up life insurance policy A paid-up life insurance policy is a policy that will stay in force without any additional premium payments. A paid-up life insurance policy is a valuable asset and makes an excellent gift.
When you give your paid-up insurance policy to us, we will either cash in the policy immediately and use the proceeds, or maintain the policy until maturity and receive the death benefit of the policy.
Because your gift is irrevocable, you will receive an income tax charitable deduction for the value of your gift at the time you transfer your policy to us. You will also remove your insurance from your estate, potentially saving estate taxes, as well.
In order to make your gift, you must assign St. Lawrence all ownership rights to your policy and make St. Lawrence the irrevocable designated beneficiary of the policy. Usually this can be accomplished by completing a simple form from your insurance provider. Be sure to identify us as: St. Lawrence University
Make St. Lawrence a designated beneficiary of your policy Another great way to make a gift to us with your life insurance policy is to make St. Lawrence a designated beneficiary of your policy. When your insurance reaches maturity, we will receive the amount or proportion you designate. You can change your designation at any time, giving you the flexibility to revise your gift for any reason.
Because your gift is revocable, you do not receive an income tax deduction at the time you create the designation. Rather, your estate will receive an estate tax deduction for the amount your insurance policy distributes to us.
It is very easy to make St. Lawrence a designated beneficiary of your life insurance policy. Simply contact your insurance agent to make a change on your policy's designation form. Be sure to identify us as: St. Lawrence University
Loan against policy will create taxable income If you give a life insurance policy on which you have an outstanding unpaid loan, you will be considered to have sold your policy for the amount of the unpaid loan. As a result, you will have to declare a portion of the loan as taxable income. You may want to pay off your loan prior to making your gift in this case.
If you plan to designate St. Lawrence as a revocable beneficiary of your policy, the existence of an unpaid loan against your policy will not affect your tax picture.
A few states will not allow you to give life insurance to a charity For your gift of life insurance to be valid, your state of residence must consider a charity to have an "insurable interest" in your policy. Most states do, but verify that this is true in your state before you make your gift.