Give a Gift That Lives Beyond You
“The purpose of life is to discover your gift; the work of life is to develop it; and the meaning of life is to give your gift away.”
– Dr. David Viscott
Leaving a legacy may mean different things to different people. Many leave their legacy by providing financial security for family members and other loved ones after they pass away. Others leave a legacy that supports the larger world by giving to a charity they care about. Life insurance can be a simple way to increase the size of your gift. Creating a charitable legacy lets you make a positive impact on others and may also give you tax benefits as well[1].
Ways You Can Support Your Favorite Charity
There’s more than one way to give back to the causes you care about. The most common is a cash donation[2]. You can also give using other assets, such as a life insurance policy, to make a lasting impact.
Did you know?
- There are more than 1.8 million nonprofits in the United States[3].
- In 2024, individuals gave $392.45 billion—the largest source of charitable giving representing 67% of total giving[4].
- About 28% of U.S. adults—75.7 million Americans—volunteered between September 2022 and 2023, giving nearly 5 billion hours of their time worth about $167.2 billion[5].
Charitable Giving and Life Insurance
Adding life insurance to your charitable giving can help you leave a bigger gift to the causes you love. It’s a flexible option that supports both your giving goals and your overall estate plan.
How to Gift Life Insurance
Here are three ways to use life insurance to benefit your favorite charity:
- Name a charity as a beneficiary of a life insurance policy that you own.
- Transfer an existing policy that you own on your life to the charity and make yearly donations to help pay the premiums.
- Let the charity apply for, own, and be the beneficiary of a life insurance policy on your life, while you make yearly donations to cover the premiums.
Learn more about these options and see which one works best for you.
You Can Make a Difference
With a little planning, life insurance can help your charitable contributions go even further. Talk to your financial professional about how to build a giving strategy that creates a lasting impact.
What is a Charitable Legacy?
A charitable legacy is a gift that supports nonprofits and causes even after you are gone. This is often done through a will, trust, or other estate planning tools.
What if I want to keep my life insurance policy but still benefit my favorite charity?
If you want to leave a legacy to charity but prefer to own and maintain access to a life insurance policy on your life, the simplest way to accomplish this is to name a qualified charity as the beneficiary of all or a portion of the death benefit.
What are the benefits of naming a charity as the beneficiary?
You’ll create a legacy of giving that supports the causes you care about and leaves a lasting impact.
What are the benefits of having a charity own a policy on my life?
When you donate to help a charity pay the premiums on a policy, your gift goes further. You may see your donation make a difference today, and the charity may receive a larger benefit after your death.
Are there any tax benefits to creating a charitable legacy with life insurance?
Yes. Depending on how it is set up, your gift may qualify for an income or estate tax deduction. The charity must be a qualified organization under the Internal Revenue Code.
How do I get started?
- Review your current donations to your favorite charities.
- Talk to your tax and legal professionals about creating a charitable legacy.
- Meet with a financial professional to see how life insurance can enhance your giving.
Pam Cathlina
Pam Cathlina is a Senior Attorney in the Advanced Sales Department at National Life Group.* She received her Bachelor of Arts degree in Psychology from the University of Wisconsin – Madison, and her Juris Doctor degree from Saint Louis University School of Law. She is a member of the State Bar of Wisconsin. She is a Chartered Life Underwriter (CLU®) and holds FINRA Series 7 and 24 licenses.
Pam has 30 years of experience in the financial services industry. Prior to joining National Life, she worked at Northwestern Mutual Life Insurance Company, where she served in a variety of roles over a 25-year timespan. Before Northwestern Mutual, Pam spent two years at a Big 5 accounting firm as an employee benefits tax consultant.
In her position at National Life Group, Pam consults with field partners, agents, and associates on matters pertaining to estate and business planning, including executive benefit planning.
*Not practicing law on behalf of National Life Group, National Life Insurance Company, or Life Insurance Company of the Southwest.