Dilip Kembhavi, '74 MEng, '78 MBA and his wife, Alaka, in their Edmonton home
If you want to make a lasting contribution to the University of Alberta while ensuring your family is looked after, consider a gift of life insurance. Donating life insurance can also have considerable tax benefits. Here are two options:
- Name UAlberta as a policy beneficiary: Retain ownership and control over the policy; bypass probate fees; apply tax receipt to your final tax return
- Name UAlberta as owner and beneficiary of a new or existing policy: Immediate tax receipt for fair market value of policy (if transferring existing policy); tax receipt for all subsequent premium payments
It was 1972 and the lives of Dilip and Alaka Kembhavi were about to change. From his small town in southwest India, Dilip, ‘74 MEng, ‘78 MBA, was moving to Canada to start an engineering degree at the University of Alberta. The food was strange, the culture unfamiliar — and the couple had been married only one week. “It was an adventure. We were both so young that we took everything in stride,” says Alaka, who moved to Canada a short time after Dilip arrived. “The sight of snow for the first time was so beautiful.”
Dilip finished an engineering degree in 1974 and an MBA four years later. Over the following decades, he worked across North America, Europe and Asia in manufacturing, health-care management and overseeing production processes in a variety of industries. Back home in Edmonton, Dilip and his wife watched as their two children found their own success at UAlberta and beyond. Their son, Nikhil, graduated with a medical degree in 2001 and now works as an anesthesiologist in Edmonton. Their daughter, Gayatri, studied rehabilitation medicine at UAlberta, got her PhD in the United Kingdom and is now a research fellow with the Department of Public Health at the National University of Singapore.
“Canada has been very good to us,” Alaka says. “The university is a big part of the community. If you live in the community, you give back to the community.” When it came time to give back to UAlberta, Dilip says donating life insurance was appealing — providing good tax benefits while allowing them to create a “substantial impact in the future.”
Only modest, regular payments required
Maximize tax credits to your estate
Get tax receipt from premiums
How it Works
An alumna purchases an insurance policy that has a death benefit of $100,000 and names the University of Alberta as owner. She pays premiums of $2,000 per year for 10 years, after which the cash value is expected to be sufficient to sustain the policy.
- The $2,000 annual premium payments are eligible for a tax receipt.
- The donor gets a tax credit of $1,000 on the annual premium payments.*
- The donor pays a total of $20,000 in premiums for a future gift of $100,000.
* Tax credit depends on donor’s income and specific circumstances