You may contribute a fully paid existing life insurance policy by making Occidental College the owner and beneficiary. This type of gift may be particularly attractive if you find your policy is no longer needed for its original purpose. The deduction is equal to the replacement value of the policy or the total of premiums paid, whichever is less.
A popular alternative is establishing a new policy and naming Occidental as the owner and beneficiary; you remain responsible for the premium payments. The College will also accept an existing insurance policy that is not fully paid up if it can be converted to a fully paid policy within five years. Under these plans you may take a deduction for the value of premiums paid on a new policy, or for approximately the cash surrender value (interpolated terminal reserve) of an existing policy, plus any future premium payments paid.
The arrangements are quite simple. You agree to make Occidental College the owner and beneficiary of the policy and make a one-time contribution or pledge payable to Oxy for up to five years. Occidental pays the premium to the insurance company.
Summary of Features and Benefits
- You are allowed an income tax deduction.
- You can make a substantial future gift to Occidental College with a relatively small annual outlay of cash.
- The process is simple and confidential.
- Policy proceeds bypass estate taxes, fees, and probate costs.
This information is provided with the understanding that Occidental College is not engaged in rendering legal, accounting, or other professional advice and assumes no liability whatsoever in connection with its use. Because tax laws are constantly changing and are subject to differing interpretations, we urge you to consult your tax and financial advisors before acting on the information contained herein.
Last updated:01/23/08