Gift-Replacement Life Insurance

How it works

You create a gift plan like a Charitable Gift Annuity or a Unitrust that will pay you income for your lifetime.

You also create a life insurance policy, naming your children or other heirs as beneficiaries. The amount of the death benefit equals the contribution you made to create your life-income gift.

You pay the premiums for the policy from the income you are receiving from your life-income gift.

At your death, Michigan State University receives the remaining balance of your gift plan and your heirs receive cash in the amount of your original gift.

Benefits

• You make a significant gift to Michigan State University with no negative effect on your familyâ ¬!"s financial security.
• After your gift, your estate is replenished for the benefit of your heirs.
• No new assets are required to pay for this replacement: tax-savings from the charitable deduction plus income you receive from your new gift plan pay the premiums.
• Donors with large families or children who will need long-term assistance can consider helping Michigan State University at a level they never thought possible.
• One asset can do the work of two: make a gift to Michigan State University, and provide an equal benefit to your heirs.