Did you know there are many wonderful ways to use life insurance to generously support our mission without affecting your cash flow? While making a gift of life insurance might not occur to many of us, this type of gift is actually a very versatile and easy way to create a meaningful legacy and have a significant impact on Fairfield’s future. 

A gift of life insurance may allow you to make a bigger gift than you ever imagined you could make during your lifetime. Since life insurance provides a death benefit several times larger than the premium paid, it is a great tool for boosting your charitable giving. In fact, more than a quarter of Americans who own life insurance say that one of the reasons they bought their policy was to provide a charitable gift.

Option 1: Make Fairfield a Beneficiary of Your Life Insurance Policy 
A great way to make a gift with life insurance is to name Fairfield as the full or partial beneficiary of your life insurance policy. When your policy reaches maturity, we will receive the proceeds or a portion of the proceeds. 

You may change your policy’s beneficiary at any time, giving you the flexibility to revise your gift for any reason. Because your gift is revocable, you will not receive an immediate income tax deduction. Rather, your estate will receive an estate tax deduction for the amount your policy distributes to us. 

It is very easy to make Fairfield a beneficiary of your life insurance policy. Simply contact your insurance agent and request a beneficiary designation form.* 

Option 2: Donate a Paid-Up Life Insurance Policy
A paid-up life insurance policy is a policy that does not require any additional premium payments. A paid-up life insurance policy is a valuable asset and an excellent gift, especially if your loved ones no longer need the financial protection it was purchased to provide. 

To make this type of gift, simply assign ownership of the paid-up policy to Fairfield and name Fairfield as the irrevocable beneficiary of the policy. Usually this can be accomplished by completing a simple form from your insurance provider.*

Because your donation of a paid-up life insurance policy is irrevocable, you will receive an income tax charitable deduction at the time you transfer your policy to us. You will also remove the insurance proceeds from your estate, potentially saving estate taxes as well. 

Option 3: Donate a Non-Paid-Up Life Insurance Policy 
Perhaps you have a life insurance policy that is no longer needed, but there are still premium payments to be made. You can give this type of policy to Fairfield if you agree to continue making premium payments. You may make the payments to Fairfield and receive an income tax charitable deduction for each premium payment you make. If you make gifts of appreciated securities to pay the premiums, you will also enjoy capital gains tax savings.

Because this type of gift is irrevocable, you will receive an income tax charitable deduction at the time you transfer your policy to us. You will also remove the insurance proceeds from your estate.

To complete the donation of a non-paid-up policy, simply assign ownership of the policy to Fairfield and name Fairfield as the irrevocable beneficiary of the policy. Usually this can be accomplished by completing a simple form from your insurance provider.* 

Option 4: Purchase a New Life Insurance Policy 
Many donors take out a new life insurance policy to benefit a cause they care about. This can be the perfect gift arrangement if you want to create a legacy and do more for Fairfield, but can’t afford to make a large gift outright. 

When purchasing a new life insurance policy for Fairfield, you may pay the premium all at once or over a period of years. If you assign ownership of the policy to Fairfield and name Fairfield as the irrevocable beneficiary, you will receive an income tax charitable deduction at the time of your gift. If you name Fairfield as the policy beneficiary but retain ownership of the policy, you will not be eligible for a deduction at the time of your gift. In either case, the life insurance proceeds will be removed from your estate.

Please contact me to discuss whether a gift of life insurance is right for you.

*Please identify us as: 
Fairfield University, Federal Tax Identification Number: 
06-0646623. Our address is 1073 North Benson Road, Fairfield, Connecticut 06824.