Gift of Life Insurance

“Donating life insurance to SDSU can be a powerful way to make a meaningful impact while preserving personal financial security. By incorporating life insurance into your philanthropic strategies, you can create a lasting legacy for a cause close to your heart and help build a better future for future generations.” — David A. Jacobs, J.D., of Acumen Insurance Solutions.

Here are several ways alumni and friends are making gifts of life insurance to SDSU:

Name us a beneficiary of the policy. This gift is as simple as updating your beneficiary designation form with the policy holder. You can designate us as the primary beneficiary for a percentage or specific amount. You can also make us the contingent beneficiary so that we will receive the balance of your policy only if your primary beneficiary doesn't survive you. Learn more about beneficiary designations.

Make an outright gift of an existing policy. You can name us as owner and beneficiary of an existing policy. You qualify for a federal income tax charitable deduction when you itemize on your taxes. If you continue to pay premiums on the policy, each payment is tax deductible as a charitable gift if you itemize. Watch how former Associated Students President, Cody Barbo, made an impact with his life insurance policy.

Make an outright gift of a new policy. You can take out a new policy and irrevocably name SDSU as the owner and the beneficiary of the insurance contract. This method may be particularly attractive for the younger donor. Whether you make one single premium payment for the policy or pay annual premiums, each payment is tax deductible as a charitable gift when you itemize on your taxes.

Donate policy dividends. You can assign the dividends or cash surrender value directly to us or instruct the insurance company to pay them to us.

Donate the Cash Surrender Value or Sale of the Policy. You can also assign the cash surrender value to us, or work with a Life Settlement broker to sell the policy and donate a portion of the proceeds. According to Lisa Rehberg, a Life Settlement broker, “Selling a life insurance policy generates 3 to 5 times the cash surrender value, on average, and even term policies can be sold”.

Donating life insurance can provide you with attractive tax advantages, including:

• Income Tax Deductions. You may be eligible for an income tax deduction for the fair market value of the policy. You can also receive deductions for contributions of future premiums if the policy requires them.
• Estate Tax Reduction. Donating a life insurance policy can help you reduce the size of your estate, potentially lowering any estate tax liability.
• Income Tax Avoidance. If you donate a policy that has appreciated in value, you can avoid paying income tax on the accrued growth if you were to cash it in.

Contact us to learn more about how you can use life insurance to create your SDSU legacy.