Most of us think of life insurance as protection, especially for our loved ones. But it is also an excellent tool for making charitable gifts you can use to champion the good works of the Church. For a fraction of the death proceeds paid during your lifetime, you could leave a very substantial gift to charity upon death.
When the original purpose for the protection no longer applies—such as to educate children now grown or to provide financial security for a spouse now deceased—your life insurance can be redirected to help support a worthwhile cause.
- You can name the Church either as the sole beneficiary or a partial beneficiary of your policy.
- You can name the Church as the contingent beneficiary, in which case we receive death benefits only if your primary beneficiary or beneficiaries precede you in death.
Estate Tax Advantages
When you name the Church as beneficiary of your policy, the amount we receive results in a charitable deduction to your estate. You will not receive a charitable income tax benefit during your lifetime because you still own the policy.
Donating a New Policy
Perhaps you don't own an existing policy but you understand the benefits of purchasing a life insurance policy and naming the Church as owner and beneficiary of the policy. Rather than paying premiums to the insurance company, you make tax-deductible cash gifts to the Church to cover the annual premiums.
Gift of a Paid-up Insurance Policy or Policy with Cash Value
You can donate a paid up insurance policy (a policy that requires no further premium payments) or a policy with cash value to the Church and receive a charitable income tax deduction. When you own a life insurance policy with accumulated cash value, you have a cash asset which can also be donated to charity.
What About Term Insurance?
Term life insurance is usually purchased with a particular time frame in mind. If you determine you no longer need the term insurance benefit, you could name the Church as the beneficiary and continue to pay the premiums rather than cancelling the policy. You could also transfer ownership of the policy to the Church during your lifetime and make annual donations to offset the cost of the premiums.
Contact us for more information.