Life insurance policies can be a terrific vehicle for giving to Kenyon. There are complications, so here are a few tips.
You may purchase a new policy and name Kenyon as owner and beneficiary. By donating the money required for the premium payments directly to Kenyon, you receive a full tax deduction for these annual gifts. The insurance company sends Kenyon the premium notice; we pay the premium and then seek reimbursement from you. Your payment to Kenyon is a tax deductible gift.
Naming Kenyon College 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 Kenyon 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.
Life insurance also can be purchased for yourself to replace other donated assets. For example, if you made a gift of real estate to Kenyon, 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 Kenyon 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 questions about gifts of life insurance, please contact:
Kyle W. Henderson ’80
Associate Vice President for College Relations
Gambier, OH 43022