The billionaire oil tycoon Boone Pickens donated $165 million to OSU’s athletic department a year ago in order to help with upgrades to the athletic facilities. Now Pickens has also contributed a new way of fundraising. He suggested “Oklahoma State buy $10 million life insurance policies for 25 of its supporters, with the university as the beneficiary.”
The program has been donned with the name “Gift of a Lifetime”. All the money received from the insurance is supposed to “be used to endow athletic scholarships and pay for facilities and operations.” OSU claims to be the first university to create such a program, let us know if you are aware of another university that has already done this.
The insureds are between the ages of 65 and 85. A policy for $10 million taken out on a person over 65 is not going to be cheap. According to the article, “the school would have to pay $20 million in insurance premiums, which it borrowed on credit.” An agent somewhere in Oklahoma just retired off this deal. I wonder what company got to do the multi-million dollar policies?
This is a really interesting post. I never thought about doing that with my life insurance policy. I wonder if I could do something like that with my policy. I got my policy through globe term life insurance, they're a good company but I don't know if they would let me change my beneficiary to a school. But I would really like to; I would love to support my alma mater.
Posted by: Carmen | June 27, 2007 3:08 PM | Permalink to Comment