Life Insurance
An important but frequently overlooked role of life insurance is the one it can play in charitable gift planning. Life insurance itself can be the direct funding medium for a gift, permitting the donor to make a substantial gift (face value of policy) for a relatively modest annual outlay (i.e., the premium payment).
Life insurance can also be used to replace an asset that has been given to the University of Michigan. How it works: After a donor makes a gift to the University of Michigan, the tax savings produced by the charitable deduction are used by his or her children or an irrevocable trust to purchase and pay the premiums on a life insurance policy on the donor's life. Such an arrangement can ensure that the interests of family beneficiaries will not be adversely affected.
Office of Planned Giving
University of Michigan Office of University Development
734-615-2022 • toll free 866-233-6661 • Contact Us
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