Getting (and Giving) the Most out of Your Insurance Policy

If you are like most individuals, you will own insurance sometime during your life. However, as time goes on, your life insurance policy may no longer be needed for its original use. If you desire to help Answers in Genesis further the biblical authority ministry, consider the charitable life insurance options explored in this article.

A major benefit of making a gift of life insurance is a current charitable income tax deduction with tax savings that may be enjoyed for up to six years. You also have the satisfaction of knowing that your policy proceeds are going to benefit a worthy cause.

It’s easy to make an outright gift of a life insurance policy. Simply contact your insurance company and fill out the proper change of ownership form, designating Answers in Genesis as the new owner. If AiG decides to hold the policy, you may make cash contributions each year to pay the policy premiums. You will be entitled to an additional charitable income tax deduction for each of these gifts.

In addition to outright gifts of insurance, a variety of charitable insurance plans are available to meet your needs. Perhaps you do not want to give your life insurance policy outright to AiG, but instead desire income during your lifetime. An excellent option is to transfer your policy to fund a charitable remainder unitrust. The unitrust will provide you with a current income stream for your lifetime or for a term of years. You will receive a charitable income tax deduction in the year the trust is established and benefit from tax savings that could be spread over a number of years. The ministry of AiG will benefit from the future remaining trust value.

Another life insurance income option is a gift annuity. Your insurance may be transferred to fund a charitable gift annuity, providing you with fixed payments for your life. The payments you receive can be quite high, depending on your age, and a portion of your payments may be tax-free. Your income stream may begin right away or in the future. Either way, you benefit from a charitable deduction in the year the gift annuity is established. AiG will receive the policy proceeds at your death.

Another gift option can be made by simply naming AiG as the beneficiary of your policy. Your life insurance proceeds will help further our good work, and your estate will benefit from an estate tax charitable deduction based on the value of the proceeds paid.

By making a charitable gift of life insurance, you will be investing in God’s kingdom. Your generous gifts will help AiG continue its mission to proclaim the absolute truth and authority of the Bible, relate the relevance of a literal Genesis, and creatively share the gospel of Jesus Christ.