Life insurance is a simple and cost-effective way to give to the United Church of God or another cause you support. Such gifts may also be designated to fund an “endowment” or other special use.
Benefits of giving life insurance
- A life insurance gift protects your privacy and avoids probate, unlike a bequest in a Will.
- The payout from the death benefit may create a larger charitable gift than your lifetime cost for the policy.
- Life insurance gifts may reduce your income or estate taxes.
- Giving life insurance allows you to keep your assets intact, such as a family farm or estate
Ways to give life insurance
- You can name the United Church of God as a beneficiary of a policy you own. You continue to pay premiums on it and you can change the beneficiary at any time. This procedure is the simplest approach.
- You can donate an existing policy to the United Church of God. You assign all ownership and control to the Church, making it the policy’s owner and beneficiary. Premiums would need to be paid by, or on behalf of, the Church (preferably by you, which may qualify you for an income tax deduction).
- You can allow the Church to insure you by opening a new policy. You would need to qualify for the policy and designate the United Church of God as owner and beneficiary. You could then make annual tax-deductible gifts equal to the premiums, which the Church would then pay to the insurer.
The laws in most states allow charitable organizations to accept these methods for either the assignment or ownership of insurance policy interests. You should seek professional tax and legal counsel before choosing to give a life insurance policy to the Church or another charity.