Life Insurance

Life insurance as a legacy gift.

Life insurance can be a powerful way to create a lasting legacy in support of the University of Southern Maine. Many people purchase policies for needs that may no longer exist—such as funding a child’s education or providing financial security for a spouse who has since passed away. If your circumstances have changed, your policy could instead serve as a meaningful gift to the USM Foundation. You may also choose to establish a new policy with your philanthropic goals in mind.

Name the Foundation as beneficiary.
One simple option is to designate the USM Foundation as a beneficiary of an existing life insurance policy. This could be a policy you personally own, one provided through your employer, or even one offered by a financial institution or credit card provider. You can choose to make the Foundation either the primary or contingent beneficiary.

Give a policy as a gift.
Another option is to make an irrevocable gift by naming the USM Foundation as both the owner and beneficiary of a new or existing policy. With this type of gift, you may be eligible for a federal income tax charitable deduction if you itemize and secure a qualified appraisal in accordance with IRS regulations.

There are a number of other creative ways to use life insurance to support your legacy.  Other ways life insurance can help you accomplish your charitable goals include: 

• You could give a life insurance policy to the University of Southern Maine Foundation even if you are still paying premiums. After the policy has been transferred to the Foundation, you can deduct the premium payments as charitable gifts.
• You may choose to buy a policy benefiting your heirs to replace money or property you have given to the University of Southern Maine Foundation.
• If it is more advantageous, you could purchase a life insurance policy on the life of another person.  Upon the death of the insured, the USM Foundation will receive full policy benefits, which will be endowed for the purposes you direct.