Two alumni of a college in Billings, Montana, have arranged to have a life insurance policy pay for a scholarship to their alma mater after death.
Sharon and Neil Lininger met in 1958 at Rocky Mountain College and were engaged later that year. They've decided to pay back to the school they love by creating a scholarship endowment that will be funded by life insurance. After Sharon passes away, the policy will fund a $420,000 scholarship at the school in her name.
School officials say they are touched by the Liningers' gift.
"Rocky Mountain College is grateful for the fantastic legacy gift created by Neal and Sharon," said RMC president Michael Mace. "We know it will give them great satisfaction to know their generosity will positively affect the futures of countless students pursuing career and life dreams, and to do so while they are both alive and well."
Life insurance was a natural choice, Sharon said, because it allowed them to leave a legacy to the school without paying income taxes. "It was simple, fun and the cost was greatly reduced by avoiding substantial income taxes," she said.
The story shows the value in using a term life insurance policy to donate to charities and other worthy causes even after death.