Leave a Lasting Legacy: How Life Insurance Can Be a Powerful Charitable Gift

For many people, giving back is part of who they are. Whether it's your local church, a nonprofit you love, or a cause close to your heart, the desire to leave a legacy of generosity is strong. But how do you give in a way that makes a meaningful impact, without compromising your family’s financial security?

That’s where life insurance as a charitable gifting tool comes in.

Start with What Matters Most: Your Loved Ones

Before committing any assets to charity, make sure your family is financially protected. Life insurance was designed first and foremost to provide a financial safety net for those you love.

Once that’s in place, you may find that you can also use life insurance to support the causes you care about, without dipping into savings, retirement accounts, or assets earmarked for heirs.

Why Life Insurance Works for Charitable Giving

If you’re hoping to leave a $10,000 (or more) gift to a church or charity, a permanent life insurance policy offers a predictable and guaranteed solution. Unlike term life insurance, which ends after a set number of years, permanent insurance remains in force for your entire life, as long as premiums are paid.

Think of it like this: if you’re 50 years old, you could pay a few hundred dollars per year in premiums and lock in a guaranteed $10,000 charitable gift, no matter when you pass.

It’s a leverage tool, similar to a conservative investment, but with one important difference: it guarantees the gift amount regardless of market conditions or how long you live.

In fact, according to LIMRA, only about 60% of Americans have life insurance, and far fewer use it strategically to support charitable giving. Yet it's one of the most tax-efficient ways to leave a legacy.

How to Set It Up

You can name your chosen charity as either the beneficiary of the policy or the owner and beneficiary, depending on whether you want the premiums to be considered tax-deductible donations.

Even a modest policy can make a real difference to a nonprofit organization. Whether it’s keeping the lights on at your church, funding scholarships, or supporting medical research, your life insurance gift could be the one that keeps giving long after you’re gone.

Want help reviewing your options? We’re here to guide you.