Gifts of Life Insurance

Life insurance can play a very creative role in gift planning. By using life insurance, you may be able to make a charitable gift much larger than you ever thought possible.

TLU as Beneficiary

For a new or existing policy you can name Texas Lutheran University as a sole or primary beneficiary, partial beneficiary, or as an alternate beneficiary. In this case, you retain ownership of the policy and have access to the policy's cash value. You also have the right to change beneficiaries. No income-tax deduction is allowed, but your estate will receive a charitable deduction.

TLU as Owner

You can make TLU owner of a new or existing life insurance policy. By making the university owner and continuing to pay the premiums, the premiums are considered charitable gifts. As an alternative, gifts in the amount of the premiums can be made to TLU, with the university paying the premiums. Either way, the value of the policy is a charitable deduction in the year ownership of the policy is transferred to TLU. If the policy is paid up, your deduction is equal to the replacement value of the policy, unless that value exceeds the tax or cost basis.

Asset Replacement

After making a gift to TLU, some individuals choose to use the tax savings produced by the charitable deduction, and/or increased income, to purchase and pay the premiums on a life insurance policy whose proceeds might be equivalent to the value of the donated property. By using this method, you can increase your income, make a substantial charitable gift, reduce estate taxes, and still leave your loved ones the desired inheritance amount.

For more information and details about gift planning, call Renee Rehfeld, assitant vice president for development, 830-372-8030 or fill out a request form.