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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.

Benefits

  • 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?

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