When most people think about legacy giving, they often picture writing a will or donating assets like cash or property. But there’s a lesser-known, highly effective option: using a life insurance policy to create a charitable legacy.

How It Works

A life insurance policy can become a powerful giving tool by naming a charitable organization as the beneficiary, either in part or in full. This can be an existing policy you no longer need for its original purpose or a new policy taken out specifically for charitable giving.

There are typically two ways to do this:

• Beneficiary Designation: You can name a charity as the beneficiary while keeping ownership of the policy. This provides flexibility—you can change beneficiaries if your wishes evolve over time.
• Policy Donation: You can transfer ownership of the policy to a charitable organization. In this case, you may receive an immediate tax deduction for the policy’s value, and if you continue to pay premiums, those payments may also be tax-deductible.

Why It’s a Smart Option

• Big Impact, Small Cost: Life insurance allows donors to make a much larger gift than they might otherwise be able to contribute during their lifetime.
• Potential Tax Benefits: Depending on how the policy is gifted, you may receive valuable tax deductions.
• Simple Process: It’s a straightforward way to establish a legacy—often just a matter of completing a beneficiary designation form.
• Flexible Giving: You can divide the benefit among family, friends, and charitable causes as you see fit.

Many people overlook this option, but life insurance can create a legacy that lives on well beyond your lifetime, supporting the causes and communities you care about.

If you’re interested in learning more about how to incorporate life insurance into your legacy plan, our team is here to help you explore your options and answer your questions.

📩 Contact us today to start the conversation. Contact Cole Eason at eason@thcf.org, or call 816-912-4182.