Alumni and Giving

Life Insurance

Life insurance policies offer a convenient way to make a charitable gift to The Southern Baptist Theological Seminary. Donors may choose from a wide range of policy types when choosing life insurance as a means of planned giving: term, whole, or endowment. Gifts of insurance are made in several ways.

• Through a policy that is no longer needed for its original purpose. The policy may have been used to provide for persons who no longer need the protection.
• Through a policy purchased specifically for the seminary. This enables many persons with limited incomes to make sizable gifts.
• Through designation of a percentage of the benefits of the policy to the seminary. (An estate tax deduction may be claimed but not an income tax deduction.)
• A life insurance policy may also be given to the seminary through a will. This may be done for certain estate tax advantages to the donor.

The value of the gift is determined by the nature of the gift: policy or premium. The charitable deduction for policy gifts is approximately equal to the fair market value of the policy or the cost basis, whichever is lower, at the time of the gift. Future premiums also are deductible. When you purchase a new policy and name the seminary as beneficiary, the entire amount of your annual premium is deductible. Gifts of insurance to SBTS should assign all incidents of ownership to The Southern Baptist Theological Seminary and name the seminary both owner and irrevocable beneficiary.

Premium payments on policies irrevocably transferred to the seminary may not qualify for the maximum 50% deduction under certain circumstances. Consult your personal tax or legal counsel if you choose this method of giving to the seminary.