Life insurance can be a powerful tool for leaving a lasting legacy for our loved ones and the charitable causes we hold dear. According to LIMRA, about 25% of Americans see life insurance as a means to provide a charitable gift, underscoring its potential to positively impact society. Here are a few ways to use life insurance to help give more and support the causes that matter most to you.
Name a charity as your life insurance beneficiary.
One simple yet impactful way to support charitable causes is by naming a charity or donor-advised fund as a beneficiary on your life insurance policy. This straightforward process allows you to allocate a portion of the policy’s death benefit to the charitable organization of your choice. The flexibility of life insurance policies enables you to adjust beneficiaries as needed – adding or removing them at your discretion – helping ensure your legacy aligns with your evolving philanthropic interests. Also, life insurance policies can have multiple beneficiaries, making sharing the benefit between your loved ones and a charity easier.
Consider a charity when you buy life insurance for your family or business.
Another way to incorporate charitable giving into your life insurance plan is to consider a charity when purchasing a policy for your family or business. Some newly issued policies come with charitable giving riders, which enable the insurance carrier to provide an additional percentage above the designated death benefit to your chosen charity. This allows you to support your loved ones and a charitable cause without compromising one for the other.
Donate your life insurance policy to a charity.
Donating your life insurance policy to a charity can be a strategic choice for those who are already committed to charitable giving. Transferring ownership of the policy grants the charity immediate control over the asset. They may choose to surrender the policy for its cash value or retain it until the death benefit matures, providing a more substantial payout for their cause. Additionally, you can opt to pay future premiums as donations, ensuring continued support for the charity you care deeply about.
Buy a policy for your charity.
Purchasing a life insurance policy specifically for a charity can effectively amplify your charitable contributions. Life insurance provides a death benefit that is often several times larger than the total premiums paid, significantly boosting your charitable giving. Properly structured, this arrangement may also provide tax deductions, further maximizing the impact of your philanthropy.
Life insurance provides a unique opportunity to make a meaningful difference in the lives of others and support charitable organizations and causes that resonate with our values. By exploring the various options available, we can help you create a legacy that extends far beyond your lifetime, leaving a lasting imprint on the causes and communities you care about.
Are you interested in exploring the ways life insurance can boost your charitable giving? Contact Stacy Schurter, Director of Life, Long-term, and Disability Insurance, or Elizabeth Burdette, Director of GIVING.
