Life insurance is a planning tool flexible enough to meet a variety of personal financial needs. Making a charitable gift through a life insurance policy is a convenient way to fulfill charitable goals.
Here are seven ways to give using life insurance:
1. Name a charitable recipient as primary beneficiary (to receive part or all of the policy proceeds); as secondary beneficiary (to receive part or all of the policy proceeds in a case where the primary beneficiary has predeceased you); and as final beneficiary (to receive part or all of the policy proceeds if all other beneficiaries have predeceased you).
2. Purchase a new policy to make a substantial, tax-efficient gift.
3. Give a current, paid-up policy by changing the owner and beneficiary.
4. Give a policy that still requires premiums payments.
5. Purchase a policy that will benefit your heirs, to replace a gift of cash or property given to the Lord's work.
6. Purchase a policy on the life of another person, if you do not qualify personally.
7. Assign dividends from a policy to a charitable interest.
Where BMM is made the irrevocable owner and beneficiary of a policy, a portion of the cash value and premium payments may qualify for a charitable income tax deduction.