Guidelines on Gifts of Life Insurance

Policy Statement

The policies and procedures set forth in this document are intended to assist and guide the activities of University personnel who are involved in the acceptance of gifts of life insurance to Adelphi.

Reason for Policy

These policies and procedures are intended to provide a standardized and consistent approach to the University’s solicitation and acceptance of gifts of life insurance that protects our good relationships with the many alumni, friends, corporations, foundations, and others who benefit Adelphi through their philanthropy.

It also insures that the receipt of gifts of life insurance advances the University’s mission and is done in accordance with applicable local, state, and federal statutes. The guidelines are designed with sufficient flexibility to accommodate complex or unpredictable gift situations and donor expectations within the constraint of consistency with the University’s mission and policies.

Who Is Governed by this Policy

Staff

Policy

For insurance to qualify as a gift, whole life, variable and/or certain universal life insurance policies should be purchased as follows:

1. Adelphi University will accept gifts of life insurance policies, including whole life, and certain variable life and/or universal life policies, which meet the following criteria
   1. The policy is either paid-up or, if not paid –up as of the date of the gift.
   2. The insured must be at least 21 years of age.
   3. Has a minimum face value commensurate with the item being funded at Adelphi University.
   4. Has a payment schedule not to exceed ten years.
2. The Owner and Beneficiary of a gifted life policy must read “Adelphi University” Designation to a specific school, college, department, or fund must be established through the fund agreement process in place, not in the policy application. The original policy should be forwarded to the Office of the Vice President for University Advancement.
   1. Adelphi University will terminate a paid up policy and receive the cash value of the policy.
   2. Adelphi University will accept non paid up policies in the form of whole life, and certain variable and/or universal life only if established as the owner and beneficiary and if the donor continues to make the necessary premium payments. These payments will be made to Adelphi University, Adelphi University will then make the premium payment to the insurance company. If, at any time, the donor fails to make the necessary premium payment, Adelphi University will allow the policy to lapse. Each gift of this kind will be initially reviewed by the Finance and Investment Committee for a case-by-case decision on disposition of the gift. A copy of the policy should be maintained in the donor file.
   3. The insured will be the donor, the donor’s spouse or the dependent minor of the donor.
   4. If intended for endowment purposes, the net value of the policy must meet the minimum funding standards for endowments of its stated purpose(s) established by Adelphi University and in effect at the time of the gift of the policy.
   5. The Office of the Vice President of University Advancement will establish an expectancy file. A copy of the policy or beneficiary record will be maintained in the donor file.
3. If a donor is transferring ownership of an existing policy, they must provide Adelphi University with the most recent annual summary and an in-force illustration for review before the gift is made.
4. Upon receiving a gift of an existing, paid up, life insurance policy, the University, as owner, can surrender it and obtain the present cash value or keep the policy until the death of the donor.
5. If a donor is taking out a new policy with Adelphi University as owner, the policy application and illustration must be reviewed by Adelphi University before the gift is made.
   1. The University should receive annual statements and premium notices from the insurance company. Premiums must be made payable by the donor annually. Cash value of any policy shall not be allowed to decrease. Premiums will not be paid by cash value, loan or dividend of the policy.
   2. Accumulated cash values will not be utilized to pay premiums.
   3. The Office of the Vice President of University Advancement shall be responsible for confirming the existence and cash value of all policies in force annually and for collecting and distributing death benefits.
6. Adelphi University will not participate in insurance programs based on selling donors insurance policies to investors.
7. If there are any questions regarding life insurance policies qualifying an individual for recognition by the Ruth S. Harley Society, please direct them to Adelphi University, Office of the Vice President of University Advancement, 1 South Avenue, PO Box 701, Garden City, New York, 11530, telephone 516.877.3250

Definitions

This policy does not have definitions associated with it at this time. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.

Forms

This policy does not have forms associated with it at this time. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.

Related Information

This policy does not have related information at this time. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.

Document History

• Last Reviewed Date: October 22, 2017
• Last Revised Date: October 22, 2017
• Policy Origination Date: Unknown

Who Approved This Policy

Brady Crook, Vice President for University Advancement