Gifts of Life Insurance: Getting Started

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Life insurance is an asset you may not think of donating to Gustavus Adolphus College until you hear how powerful, practical and simple it can be.

How It Works

When you own a life insurance policy with accumulated cash value, you're essentially sitting on a pile of money. When the original purpose for the protection no longer applies—such as to educate children now grown or to provide financial security for a spouse now deceased—your life insurance can be redirected to help support a worthwhile cause. One option is simply to name Gustavus Adolphus College as the primary beneficiary. (Naming us as beneficiary while you retain ownership of the policy, however, does not qualify you for an income tax deduction.) Or, you can name us as the beneficiary and also assign us ownership of the policy as a current charitable gift. Doing so provides you tax benefits as outlined below.
Gift of Life Insurance
You give a life insurance policy.
You receive an income tax deduction.
Insurance Company
The policy is kept or cashed in by Gustavus Adolphus College.
Gustavus Adolphus College

How You Benefit

When you assign us ownership of a life insurance policy and also name us as the beneficiary, the following good things happen:

  • You receive an income tax charitable deduction, available under most circumstances.
  • You realize tax savings from use of the deduction, and these savings can be invested for future income.
  • You reduce your future estate tax liability.
Question MarkDid you know?
If you are concerned that supporting our work will reduce your family's inheritance, a new life insurance policy equal to your charitable gift can replace the value of your loved ones' inheritance.

Donating a New Policy
Perhaps you don't own an existing policy but still realize how beneficial giving life insurance can be. If so, you can—in most states—purchase a new insurance policy and name a qualified charity like ours as the beneficiary and owner of the policy. Rather than paying premiums to the insurance company, you make tax-deductible cash gifts to cover the annual premiums. Even greater leverage is possible when two donors, usually spouses, purchase a two-life second-to-die policy. With two lifetimes before the payment of death benefits, a future gift to us will cost you even less.

Download a free guide to learn more about the benefits of giving life insurance.
Please contact Laurie Dietrich at 507-933-6043 or if we can answer any questions you have about this way to support our work.