Bequests and Planned Giving
Naming Earlham as owner and beneficiary of a paid-up policy entitles you to a deduction equal to your cost basis in the policy, or its replacement cost--whichever is less.
Naming Earlham as owner and beneficiary of a policy that is not paid up provides you with a tax deduction approximately equal to the policy's cash surrender value.
You also may purchase a new policy and name Earlham as owner and beneficiary. By donating the money required for the premium payments directly to Earlham, you receive a full tax deduction for these annual gifts. The insurance company sends Earlham the premium notice; we pay the premium and then seek reimbursement from you. Your payment to the college is a tax-deductible gift.
Life insurance also can be purchased for yourself to replace other donated assets. For example, if you made a gift of real estate to Earlham, you could purchase a policy for the amount of this gift to ensure that your family will be taken care of as well.
Of course, you can name Earlham as a beneficiary of any type of life insurance policy or similar product, and we welcome such designations whether or not they would qualify you for a tax deduction.
For more information on
gifts of life insurance...
Kim Kelly Tanner
Associate Vice President for