Life insurance is an important and often overlooked option of making a gift to Carroll College. Whole life or universal life insurance policies that are no longer required as part of the donor's financial and estate plan are well suited to be used as a gift. For the maximum immediate tax benefit, the donor should irrevocably assign the policy to the college as both owner and beneficiary. The donor is allowed an immediate federal income tax deduction for the lesser of either the policy's fair market value or the net premiums paid. When the policy is not paid up, the donor may take an income tax deduction for contributions to Carroll to offset the college's payment of subsequent premiums. Life insurance makes it easier for a donor to give a larger gift that he or she could have otherwise afforded. In some cases, whole life or universal life policies can be structured so that policy premiums can be paid in a limited number of years, with policy dividends paying premiums for the remainder of the policy's life.

There are several ways in which a donor may use life insurance to make a gift to Carroll College:

• Make a gift of an existing life insurance policy
• Establish a new policy and name Carroll as the owner and beneficiary of the policy
• Use life insurance to replace the value of gifts to the college