Life Insurance
By making a gift of life insurance you can increase the size of your gift to the University. You can name the UWSP Foundation as the primary or secondary (contingent) beneficiary of a life insurance policy. While this offers no immediate income tax deduction under current tax law, the death benefit passes on to the Foundation free of any estate tax liability for your heirs.
You can also name the UWSP Foundation as the owner of a life insurance policy; either a policy you now own or a new policy purchased specifically for this purpose.
Example:
You have a life insurance policy that's no longer needed for its original purpose such as providing for young children, a spouse, or paying off a debt. This policy has a death benefit of $50,000 and a cash value of $20,000. You transfer the ownership of the policy to the UWSP Foundation, name the Foundation as the beneficiary of the policy, and you remain as the insured. At the 31% Federal income tax rate, you receive a charitable deduction of $6200 for the year you make the transfer of ownership. If you continue to pay premiums on the policy you are entitled to additional income tax deductions for the amount of premiums you pay in the future years. At your death, the death benefit is paid to the UWSP Foundation and allocated according to the instructions given by you.
For more information contact: Deb Anstett, Director of Annual Giving, UWSP Foundation, 1-800-858-5267