Gift of Life Insurance
Supporting Schulich Through a Gift of Life Insurance
You can help Schulich School of Business plan for the future with a gift of life insurance.
How Can I Donate Life Insurance?
You can make a revocable gift of life insurance by retaining ownership of the policy and designating Schulich* as the beneficiary of all or a portion of the proceeds. Or you can name Schulich as the irrevocable owner and beneficiary of the policy, with the proceeds supporting the School upon the death of the named insured.
What are the Benefits?
With a gift of life insurance, you can often make a larger donation than might be possible in your lifetime at a fraction of the out-of-pocket cost. Depending on how your gift is structured, you will also receive tax benefits now or through your estate. Unlike charitable bequests, gifts of life insurance are not subject to probate.
How Do I Get Started?
Talk to your professional advisor about your plans and how best to structure your gift (see sidebar and reverse for sample financial scenarios). It is strongly recommended that you consult with Schulich’s gift planning team for correct policy wording and to ensure your wishes can be fulfilled.
What Might my Gift Support?
Unrestricted gifts can be used by Schulich for the area of greatest need, or you may choose to designate your gift to a specific purpose, such as a scholarship or chair. You will also have the choice of making an expendable gift which will be spent during the fiscal year it is received, or an endowed gift which will be invested in perpetuity with only a portion of the income applied each year for the stated purpose.
How Will my Gift Be Recognized?
Depending on your gift designation, you may have the option of naming your chair, scholarship or space. When you share your plans to make a gift of life insurance, you will become a lifetime member of The White Rose Legacy Circle. Your name will be printed in donor listings, and you will receive front-of-the-line privileges for select York University events and a special invitation to our annual, members-only event. With your membership, you will become a part of Schulich’s special donor family — those who are integral to our future and part of our distinctive international alumni network.
*When naming Schulich as beneficiary and/or owner of a life insurance policy, the correct legal wording is York University (for the benefit of the Schulich School of Business).
The Right Choice for You
- Name Schulich as the owner and beneficiary of a fully paid-up policy.
- Name Schulich as the owner and beneficiary of an existing policy and continue to pay the annual premiums.
- Purchase a new policy and name Schulich as the owner and beneficiary.
- Designate Schulich as the beneficiary, but not the owner of a new or existing policy.
- Use a life insurance policy (with your heirs as the beneficiaries) to replace the value of an asset donated to Schulich.
Sample Gifts of Life Insurance
Donating an Existing, Paid-Up Policy
You name York University (for the benefit of the Schulich School of Business) as the owner and beneficiary of a $100,000 paid-up policy with a cash value of $40,000. You receive a donation receipt for $40,000. Assuming a combined tax credit of 45%, you will receive an immediate tax credit of $18,000.
Donating an Existing, Outstanding Policy
You name York University (for the benefit of the Schulich School of Business) as the owner and beneficiary of an existing $150,000 policy with a current cash value of $X and # outstanding premium payments of $X each. You receive an immediate donation receipt of $X and additional receipts at the time of each premium payment.
Donating a New Policy
You purchase a $50,000 life insurance policy for your daughter and name York University (for the benefit of the Schulich School of Business) as the owner and beneficiary. You receive donation receipts for each annual premium payment of $1,962. Assuming a combined tax credit of 45%, you will realize a tax savings of $883 for each of the five years of payments, resulting in a net annual cost of $1,079. You will provide Schulich with a future gift of $50,000 for a total net cost of $5,395.
Naming York as Beneficiary
You name York University (for the benefit of the Schulich School of Business) as the beneficiary, but not the owner of a new or existing $100,000 life insurance policy. Upon your death, your estate will receive a tax receipt for $100,000, which may significantly reduce the estate tax owing.
This financial information is provided only as a sample. It should not be relied upon as a substitute for professional advice. Schulich’s gift planners can assist you and your legal advisor in drafting the most appropriate wording for your gift to ensure that your wishes are consistent with the mission and values of Schulich and that your intentions can be honoured in the future.
To learn how you can make a gift of life insurance to the Schulich School of Business, contact:
David K. Bell, LL.B.
Executive Director, Development and Alumni Relations
Schulich School of Business