Gift of a new policy with GFU as owner and beneficiary example
A donor may contribute a life insurance policy in which the premiums remain payable. Or, a new policy may be initiated in which George Fox is the owner and beneficiary, and holds all ownerships rights in the policy. The donor has made a commitment to make gifts to George Fox that will be applied to the premium payments.
Walter Baker has contributed a life insurance policy with a death benefit of $225,000 to George Fox University that will benefit the art department of the university. The premium payments for the policy are $123 per month. Walt has made a commitment to contribute $123 a month to the university to cover the cost of the life insurance.
It is important to note that life insurance proceeds are paid promptly and not subject to the delays and costs generally associated with estate planning methods.