Week 5- Giving Through Life Insurance
Many of us have one or more life insurance policies we purchased for a specific reason. It may have been purchased to provide security for a spouse and children, to pay death taxes, to complete payment of a mortgage, to assure money for your children’s education, to protect a business or to save for future contingencies.
In addition to being an excellent financial planning tool, life insurance can also be an economical, convenient, flexible and immediate way to make meaningful charitable gifts.
There are at least seven ways to give using life insurance:
- Name a charitable recipient(s) as a primary or secondary beneficiary(s)
- Purchase a policy and name a charitable recipient(s) as the owner(s) and beneficiary(ies).
- Give a paid-up policy to a charitable recipient(s)
- Give a policy on which you are still paying premiums
- Buy a policy to benefit your heirs to replace what you have given to a charitable recipient(s)
- Buy a policy on the life of another person and name the charitable recipient(s) the owner and beneficiary(ies).
- Assign policy dividends to charitable interests.
For more information about the tax benefits and how to give through life insurance, call us toll free in Kentucky at 1.866.489.3533.
Prayer Focus: Pray for guidance in determining whether or not you have a life insurance policy no longer needed and which could be used to make a gift to your church and/or your other favorite Baptist causes.
The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.