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Gifts of Life Insurance - Gift-Replacement

Lifetime Insurance Diagram

How It Works

  • You create a gift plan like a Charitable Gift Annuity or a Unitrust that will pay you income for your lifetime.
  • You also create a life insurance policy, naming your children or other heirs as beneficiaries. The amount of the death benefit replaces the contribution you made to create your life-income gift.
  • You pay the premiums for the policy with the tax savings on this gift and from the income you are receiving from your life-income gift.
  • At your death, the Foundation receives the remaining balance of your gift plan to benefit WVU as you specify, and your heirs receive cash in the amount of your original gift.


  • You make a significant gift to support West Virginia University with no negative effect on your family's financial security.
  • After your gift, your estate is replenished for the benefit of your heirs via the insurance coverage.
  • No new assets are required to pay for this replacement: tax-savings from the charitable deduction plus income you receive from your new gift plan pay the premiums.
  • Donors with large families or children who will need long-term assistance can consider helping WVU at a level they never thought possible.
  • One asset can do the work of two: make a gift to support WVU and provide an equal benefit to your heirs.

Next: Tell me more...

Please contact us so that we can assist you through every step of the process.

Questions and Answers

I’ve heard of an Irrevocable Life Insurance Trust. Should I use that to hold my policy?

Will I get to enjoy any of the income from my gift plan, or will all of it be applied to the life insurance policy premiums?