A NEW FUND RAISING IDEA

LIFE SETTLEMENTS

Colleges can introduce this idea to their alumni who are over age 65, or in bad health.

If an alumnus owns $100,000 or more of term life insurance or cash value life insurance, and is considering canceling a life insurance policy (because it is no longer needed, or the premiums are too costly), ask the alumnus to check the "actuarial value" of the life insurance policy before lapsing or cashing out the life insurance policy.

If the alumnus' life expectancy is less than 15 years, Wall Street investors might buy the alumnus' life insurance policy for an amount which might exceed ten percent of the face amount of insurance on term policies, and might exceed ten percent of the net amount of insurance (face amount, less cash value and policy loans) on cash value policies.

If there is an "actuarial value" that exceeds the cash value of the policy:
1. The alumnus can donate the policy to the college,
2. The college can sell the policy for its "actuarial value" and cash value (if any),
3. The college can pay the cash value to the alumnus and keep the actuarial value, and
4. The alumnus receives the cash value and a charitable donation for the actuarial value.

Depending on his future life expectancy, an alumnus who donates a policy to his college might receive a charitable deduction of $10,000 on a $100,000 term insurance policy, or a charitable deduction of $100,000 on a $1,000,000 term insurance policy, which represent significant gifts to their colleges.

If an alumnus would like to check on the actuarial value of a life insurance policy, we will assist in completing an application and authorizations, submit the application to selected funding organizations, negotiate the highest offer from such organizations, and relay this offer to the alumnus or a representative for acceptance.

Sample solicitation letter MS Word Format or Adobe PDF Format