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Life Insurance - Gift-Replacement


Gifts of Life Insurance - Gift-Replacement

Lifetime Insurance Diagram

How It Works

  • You create a gift plan like a Charitable Gift Annuity or a Unitrust that will pay you income for your lifetime.
  • You also create a life insurance policy, naming your children or other heirs as beneficiaries. The amount of the death benefit replaces the contribution you made to create your life-income gift.
  • You pay the premiums for the policy from the income you are receiving from your life-income gift.
  • At your death, Seattle Children's Hospital receives the remaining balance of your gift plan, and your heirs receive cash in the amount of your original gift.


  • You make a significant gift to Seattle Children's Hospital with no negative effect on your family's financial security.
  • After your gift, your estate is replenished for the benefit of your heirs.
  • No new assets are required to pay for this replacement: tax-savings from the charitable deduction plus income you receive from your new gift plan pay the premiums.
  • Donors with large families or children who will need long-term assistance can consider helping Seattle Children's Hospital at a level they never thought possible.
  • One asset can do the work of two: make a gift to Seattle Children's Hospital and provide an equal benefit to your heirs.


This is not professional tax or legal advice. Donors must consult their tax and legal advisors regarding their specific situation.

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