Gifts of Life Insurance
A gift of your life insurance policy could be an excellent way to make a gift.
If you own a life insurance policy that has outlasted its original purpose, consider making a gift of your insurance policy. For example, you may have purchased a policy to provide for minor children and they are now financially independent adults.
Benefits of gifts of life insurance
- You receive a charitable income tax deduction.
- If the charitable organization retains the policy to maturity, you can receive additional tax deductions by making annual gifts so that they can pay the premium.
- If the organization cashes in the policy, you will be able to see firsthand how your gift supports their charitable work.
- If the nonprofit retains the policy to maturity, or you name them as a beneficiary, once the policy matures, the proceeds of your policy will be paid to your charitable beneficiaries so that they can use the proceeds to further their charitable work.
Gifts of life insurance video
How to make a gift of life insurance
To make a gift of life insurance, please contact your life insurance provider, request a beneficiary designation form from the insurer and include the nonprofit as the beneficiary of your policy.
Other considerations
You can also designate a charitable organization as a partial, full or contingent beneficiary of your life insurance policy. You will continue to own and can make use of the policy during your lifetime. Your estate may benefit from an estate tax charitable deduction.
Your deduction for the gift of life insurance will depend on whether the policy has increased in value above the premiums and whether the policy is paid up or there are remaining payments to be made.
Contact us
If you have any questions about making a gift of a life insurance policy, please contact us. Lutheran Giving would be happy to answer questions that you have. Please let us know if you have already named one of our partner ministries or your congregation as a beneficiary of your life insurance policy. We would like to thank you and recognize you for your gift by including you in our Willing Witness legacy society.
