Life Insurance
Life insurance may be used in a variety of ways to make a charitable gift to Ouachita. For policies that are paid up (where no more premiums are due), you may transfer ownership of the policy to Ouachita and name Ouachita the beneficiary. In most cases, you will receive an income tax deduction equal to the cash surrender value of the policy.
For policies with premiums remaining to be paid, when you give the policy to Ouachita and name the university the beneficiary, you will receive an income tax deduction roughly equal to the cash surrender value of the policy plus a portion of your last premium payment. If you continue to make future premium payments, you can also enjoy income tax deductions for those payments.
If your employer provides group term life insurance and pays the premiums, you can name Ouachita the beneficiary of that policy and avoid paying taxes on the premiums you would otherwise incur.
Finally, although you will not obtain a charitable tax deduction without transferring ownership to Ouachita, you can name the university the beneficiary of any life insurance policy you own.
When considering making an estate gift, we urge you to seek the advice of your financial advisor or contact the Development Office.