Gifts of Life Insurance

Giving a gift of life insurance either through an existing policy or a new one is a great way to turn small monthly premiums into a significant charitable gift.

What Your Plan Should Include

Life insurance is one of the most effective means to maximize giving, and can be an excellent planned giving tool for a donor who wishes to make a substantial gift to ministry. Depending on the policy chosen, moderate premiums are spread over time with the resulting gift being quite significant at time of death. Both existing or new life insurance policies can be donated. While there are many different types of life insurance, the principle of giving remains the same; a relatively small present gift will ultimately provide a much larger gift in the future.

There are a few ways to use Life Insurance as a charitable gift.

  • Name LFC (or other ministry) as the beneficiary of your policy. Upon your death, the proceeds of the policy go directly to ministry bypassing your estate, and your estate receives a tax receipt for the full amount of the policy.
  • Transfer ownership of an existing policy to LFC (or other ministry) named as the beneficiary. You receive a current tax receipt for the fair market value of the policy and receive an annual charitable deduction for any ongoing premiums you continue to pay.
  • Take out a new policy naming LFC (or other ministry) as the owner and beneficiary and receive annual tax receipts for your ongoing premium payments.

Using life insurance is convenient, simple, and doesn’t require any changes to your will. If you name LFC as the beneficiary or owner and beneficiary, you can fill out a Gift Allocation Agreement to designate what ministries will receive your gift.