Life Insurance Policies

How it Works

 

  • ​​​You can provide now for a future gift to the school by naming Incarnate Word Academy Foundation owner and beneficiary of a life insurance policy.

  • You make annual gifts to the Incarnate Word Academy Foundation in the amount of the premium payments.

  • When the policy matures, the proceeds are paid to the foundation to be used as you have designated.

 

Benefits

 

  • You can make a significant gift from income instead of capital.

  • Your gifts offsetting the premium payments are fully tax deductible.

  • You build our future financial strength.

 

Gifts of Life Insurance: The Details

 

Donate a policy, take a deduction, deduct future premium payments, if any, and make an extraordinary gift. You’ll also get the proceeds out of your taxable estate.

 

Is this gift right for you?

A gift of life insurance is for you if:

 

  • You are a younger donor who wants to make a significant gift.

  • Your estate probably won't have substantial assets to distribute to non-family members.

  • You can make a commitment to provide gifts that will offset our premium payments on the policy.

  • ​Your financial projections may indicate that you won't accumulate large blocks of capital during your lifetime or that your family will have first call on your estate.

  • You want to make a significant gift to the school but wonder if you'll find the resources to do so.​

 

Life insurance uses manageable payments made from income — the premiums — to create a large future gift for the school. You can build the school's long-term financial strength without diminishing your own.

 

Make the gift by taking out a new policy on your life, naming the Incarnate Word Academy Foundation the irrevocable owner as well as beneficiary (this arrangement makes the gift complete in the eyes of the IRS). The Incarnate Word Academy Foundation will receive the premium notices, and you will make annual donations to offset the premium payments. These gifts will, of course, be tax deductible. There is no deduction for setting up the policy itself.​

 

Besides creating a new life insurance policy, you may donate an existing policy. This gift will generate an initial tax deduction: the lesser of the policy's fair market value.  The Incarnate Word Academy Foundation can guide you in determining this — or the total of your net premium payments. If premiums are still payable, you will be asked to make tax deductible contributions offsetting our payment of those premiums. The Incarnate Word Academy Foundation reserves the right to keep such a policy in force during your lifetime or to terminate it sooner for its cash surrender value.

Please contact the IWA Advancement Office at (361) 883-8229 or Sister Martha Ann Snapka
at (361) 877-1232 so that we can assist you through every step of the process.