Estate Gifts - Life Insurance
Life insurance needs change as life progresses. Children become self-sufficient, and investments may provide unexpected income and security. As a result, you may not need all your life insurance coverage for the reasons you initially purchased it. In addition, because federal law now exempts many estates from taxation, life insurance purchased to cover estate taxes may be "obsolete."
One of the simplest ways to make a significant gift in the future is to name Cedarville University to receive all or a portion of the proceeds of a policy no longer needed for its original purpose.
Another way to make a gift of insurance is to purchase a new policy, naming Cedarville University as beneficiary, co-beneficiary, or owner. If Cedarville is the owner, you can claim a tax deduction for the premiums you pay in the future. In this way, you can ensure a gift that may ultimately be much larger than its cost.
You should seek professional assistance to determine the best use for your life insurance policies and the best method to make distributions to your heirs.
Example
Mr. and Mrs. Green purchased a $250,000 life insurance policy on Mr. Green's life in 1975. Since their advisors tell them they no longer will owe estate taxes, the Greens decide to change their beneficiary to provide that $25,000 from the policy proceeds be designated to Cedarville in memorial of Mr. Green's parents. The remaining $225,000 is to be paid to the Green's grandchildren in equal shares
We are grateful for those who have elevated Cedarville to "family status" as an heir in their estate plans. If you are one of these special individuals, we invite you to join The William Gibson Society, allowing us the opportunity to say "thank-you."
