1. What can Insurance do for YOUR organization??
The Auburn Success Story: Leveraging Planned Gifts Through the Power of Insurance
Presented by
Phillip O. Cowart
Associate Director

2. A Different Approach

3. Benefits of a Life Insurance Program
Allows donor to give a big gift without spending big bucks.
Bridges giving gap.
Keeps donors engaged. Membership into legacy society.
Tax deduction for premiums paid by donors.
Develops a marketing force.
Ability to maintain control.

4. Auburn’s Success Story
AU’s Insurance Program was established in under the leadership of then director, George Willock.
Currently have 301 permanent policies with Auburn listed as owner and beneficiary of policy.
Average age of donor is 42.
Current total face value total is approximately $100,758,000.
Current total cash value is approximately $7,378,000.
70% of policies are self-paying, requiring no more premium payments.
Since 2002, Auburn has received over $750,000 in realized money from insurance gifts.

5. Requirements for Successful Program
Create an Insurance Acceptance Policy
Insurance company must be ranked in one of the top 2 tiers of ratings companies
Permanent policies only - No term policies.
Limit the premium payment period to 5-10 years.
Limit the age of the insured on policy – no children under 21 years of age.
Policy illustrations MUST be approved by office prior to presenting to a donor.
Create an Insurance Agent Agreement.
Insurance Rating Company
1st Tier Rating
2nd Tier Rating
A.M. Best
A++ A+
Moody’s
Aaa Aa
Fitch
AAA AA
Standard & Poor’s

6. Insurance Gift Procedures

7. Marketing an Insurance Program
Develop Agent Pool
Brochures
E-blast, E-newsletters, Website
Centers of Influence (i.e. Trust Officers, Lawyers, Financial Professionals, etc.)

8. Questions??