Vol. 1, Issue 4  March 2005

Life Insurance is an Important Source of Protection for Financial Benefit

When we are young the reasons we buy insurance may include protection and security on our home mortgage, the care and education of our children, or as an investment toward our retirement. As we grow older the original purposes for life insurance may no longer be valid.  In these instances a number of CUW friends have found it advantageous to use life insurance policies to make major gifts.

The Advantages of Contributing a Life Insurance Policy   Concordia University Wisconsin and its donors receive a number of benefits as a result of gifts, such as whole life, universal life, or term life insurance. For the donor, the advantages include: Simplicity: Giving life insurance is not complicated because the transaction is easily handled by the donor�s life insurance agent. There are no legal fees with which to contend. Immediacy: If Concordia is named as the beneficiary of a life insurance policy, then upon the insured's death, life insurance proceeds are generally paid without delay to our institution; the funds can be quickly applied to the purposes that the donor designated. Confidentiality: Unlike a will, which is subject to probate proceedings, a gift of life insurance is not subject to public scrutiny and can be a private matter between the donor and Concordia, if desired. Deductibility: As a charitable contribution, a gift of life insurance can provide a donor with a Federal income tax deduction if Concordia is made the owner and the beneficiary of a policy that has a cash value.  Such gifts may be deducted in an amount up to 50% of the donor's adjusted gross income and any excess may be deducted within the next five years, subject to the same 50% limit each year. Certainty of Full Payment: Concordia can receive the policy proceeds upon proof of death of the insured.  The gift is not reduced by administrative fees or taxes.  In contrast to assets passing under a donor�s will or living trust, life insurance may not be subject to claims by heirs or creditors.

Alumni Heritage Room   The Gift of Life Insurance Gift of a Paid-Up Policy   One of the ways to make a life insurance gift is that a donor instructs his or her insurance agent to transfer ownership of a fully paid-up policy to Concordia University Wisconsin and is also named as beneficiary.  Gift of a Policy That Is Not Paid-Up A policy on which premiums are still being paid can be given in the same manner as a paid-up policy. Ownership of the policy is transferred to Concordia, which is also named beneficiary. The donor may make the premium payments directly to the insurance company or, preferably, for tax purposes, make a gift each year to Concordia in the amount of the yearly premium.  Designate Concordia as a Partial or Contingent Beneficiary To name Concordia as the beneficiary of a portion of the life insurance proceeds that will be paid out upon the insured�s death, the donor need only contact his or her insurance agent and request that Concordia be added as a partial owner and beneficiary of an existing policy. This can be done with whole life, universal life, and term policies.   Buying Life Insurance to Make a Charitable Gift In this case, the donor takes out a new policy for the express purpose of making a charitable gift and assigns ownership to Concordia.

Life Insurance Checklist   [   ] Do I have an up-to-date list of all my        policies? [   ] Where are my policies kept? Are they in a        safe, readily available place? [   ] Do I know what they cover and who the        beneficiaries are of each policy? [   ] Is there any reason for me to consider       changing my beneficiaries? [   ] Is my insurance still needed? All or part of it? [   ] Do I need additional coverage? [   ] Is my spouse thoroughly familiar with the       coverage provided by the policies? [   ] Am I using my dividends in the best way? [   ] Are any of my policies paid up or about to be       paid up? [   ] Is my premium payment plan still the best for       me? [   ] Would it be advantageous to change the       ownership of my policies? [   ] Have I borrowed against any of my policies?       How much? [   ] What is the current cash value of each of my        policies? [   ] Should I consider converting or gifting any of       my current policies?

There are several ways to make a gift using life insurance. Your financial advisor, attorney, and insurance agent will be of significant help to you in deciding what to do.

  

                                                             In Conclusion

             Life insurance can provide a means for many people to make significant gifts. For some persons, life insurance may be the only way they are able to make a lasting, generous, and meaningful gift. Before making this, or any other major gift, it is important to consult your financial advisors - your accountant, your attorney, and your life insurance advisor. Moreover, before deciding to purchase new life insurance, you should consult with your financial advisors as to whether life insurance or some other form of investment is likely to provide the highest total return for you, your family, and your charitable beneficiaries such as Concordia University Wisconsin. Your financial advisors can help you accomplish your objectives in making a charitable gift and help strengthen or build your estate plan to ensure your family's financial security.

We would be happy to provide information on the ways in which life insurance can help you achieve your objectives and at the same time support Concordia University Wisconsin.

For more information please contact:

Philip Meinzen, MS Ed., CDP, CFRE, Senior Director of Planned Giving 

Tel:  (262) 243-4590, Fax: (262) 243-3590 

Our First Annual Heritage Society Luncheon                                              Monday, November 15, 2004

The first Annual Concordia Heritage Society Luncheon with President Patrick T. Ferry, was held  on November 15th, 2004 and took place in the Lake Shore Room at Concordia University Wisconsin. The members of the Concordia Heritage Society, along with Dr. Ferry, Mr. Meinzen and Mr. Hilgendorf, gathered together to share their stories and memories about what Concordia has meant to them through the years. As a part of our family of committed donors, those who have remembered Concordia through their estate gift plans are invited to become members of the Concordia Heritage Society, formerly known as the Advent Society. This is our way of honoring those who have given, as well as those who are considering a planned gift in their estate or financial plans to support our mission. Concordia celebrates our family of Heritage donors with the creation of a family album. Each member of the Concordia Heritage Society is presented individually in our album, has an annual opportunity to meet with the president and also receives a special Concordia Heritage Society lapel pin.  Heritage gifts not only strengthen our mission to students, they also sustain our vision and our future

Dr. Patrick T. Ferry    and Ruth Loppnow

Clarence and Mary              Harms

Alumni Ambassador, Gus Azinger and Robert and Dorothy Wallshlaeger Alumni Ambassador, Gus Azinger and Robert and Dorothy Wallshlaeger

Open discussion            forum.

 

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