Charitable Life Insurance
Gifts of life insurance
Many have found a gift of life insurance is a practical and affordable way to make a meaningful charitable gift, and there’s great flexibility depending on your financial situation.
Including charitable life insurance in your plan
There are a several benefits to giving life insurance through Thrivent Charitable:
Contact Charitable Giving Services for more on the benefits of giving life insurance.
- You can name multiple benefiting charities through one life insurance contract.
- You can change the charities who will benefit without needing to change ownership of the life insurance contract by simply amending your charitable fund.
- You can give anonymously if it's your wish.
- Based on the gift size, a portion of the death benefit may be distributed in a lump sum to one or more charities if it's your desire.
How do I establish a gift of life insurance at Thrivent Charitable?
1. Create a fund online , or complete and send the fund workbook to Thrivent Charitable. Please include a copy of an in-force illustration of the policy if possible.
2. Thrivent Charitable establishes the fund based on your charitable intentions and sends a confirmation to you.
3. For new policies, complete the life insurance application with the insured as owner and Thrivent Charitable as beneficiary. (You may also choose to give an existing policy).
4. Assign ownership of the contract after the fund is established. To ensure you receive the maximum tax deduction possible for your gift of a new contract, complete and sign Absolute Assignment Form 10AA on the same date as the insurance application. The form must be signed by the contract owner in the presence of an impartial witness or notary public.
often Thrivent ).
6. The insured retains the contract and receives premium notices.
7. Premium payments on charitable life insurance contracts qualify as charitable contributions and are substantiated for tax purposes by Thrivent Charitable. Premium payments should be made payable to the insurance company (often Thrivent ) who will notify Thrivent Charitable a premium is received, and Thrivent Charitable will send you a gift receipt.
Please contact Thrivent Charitable if you wish to pay premiums using publicly traded securities or mutual funds.
Note: This process does not apply for qualified charitable distributions (QCDs) used to pay premiums. In this case, the QCD should be made directly to Thrivent Charitable, and then Thrivent Charitable will use the gift to pay the premium.
2. Thrivent Charitable establishes the fund based on your charitable intentions and sends a confirmation to you.
3. For new policies, complete the life insurance application with the insured as owner and Thrivent Charitable as beneficiary. (You may also choose to give an existing policy).
4. Assign ownership of the contract after the fund is established. To ensure you receive the maximum tax deduction possible for your gift of a new contract, complete and sign Absolute Assignment Form 10AA on the same date as the insurance application. The form must be signed by the contract owner in the presence of an impartial witness or notary public.
- Thrivent Charitable tax ID number: 41-1802412
- Thrivent Charitable mailing address:
Thrivent Charitable
PO Box 8072
Appleton, WI 54912-8072
6. The insured retains the contract and receives premium notices.
7. Premium payments on charitable life insurance contracts qualify as charitable contributions and are substantiated for tax purposes by Thrivent Charitable. Premium payments should be made payable to the insurance company (
Please contact Thrivent Charitable if you wish to pay premiums using publicly traded securities or mutual funds.
Note: This process does not apply for qualified charitable distributions (QCDs) used to pay premiums. In this case, the QCD should be made directly to Thrivent Charitable, and then Thrivent Charitable will use the gift to pay the premium.
Is gifting life insurance a strategy for me?
- Those who wish to make a significant gift with a smaller investment.
- Those who want an annual charitable tax deduction for the premiums they pay.
- Ages range for gifts of life insurance from 4 to 95. However, it is especially ideal for pre-retired persons (ages 50-64) and retired persons (ages 65-75).
- Those age 70+ who must take required minimum distributions (RMDs) from retirement plans but don't need the income.
What are the potential tax and financial benefits of giving life insurance?
- You may receive a charitable tax deduction for each premium paid.
- Once the policy has been assigned to Thrivent Charitable, you can pay premiums using cash or publicly traded securities, bypassing capital gain on securities held for more than one year.
- Since life insurance is typically a non-probate asset, the life insurance proceeds will be paid directly to Thrivent Charitable, potentially avoiding any delay in payment.
Are there additional financial considerations with charitable life insurance?
- The insurance company (often Thrivent) will send premium notices directly to you. You should make premium payments directly to the insurance company unless you expect the amount of the premium to exceed 30% of your adjusted gross income in the calendar year.
If so, it may provide a greater tax benefit to make the payment directly to Thrivent Charitable, because charitable deductions for premium payments paid directly to the insurance company are limited to 30% of your adjusted gross income, excess deductions may not be carried over to future tax years.
Payments made directly to Thrivent Charitable are limited to 60% (for gifts January 1, 2018, and thereafter) of your adjusted gross income and can be carried over for up to five additional tax years.Contact Charitable Giving Services to discuss this situation. - The IRS requires an independent qualified appraisal for all noncash charitable gifts of $5,000 or more. These noncash gifts include life insurance made through absolute assignment to a charity, such as Thrivent Charitable.
Thrivent Charitable has retained the services of an independent qualified appraiser to assess insurance gifts of $5,000 or more. There will be no out-of-pocket cost to you for this service. The only effect to you is the reduction of the charitable contribution and the corresponding charitable deduction, by the amount of the appraisal fee, which is estimated at $200. (This may be an issue for gifts of existing policies or new policies with a large initial premium.)
Please note this ruling only applies to the absolute assigned value of an insurance policy, not the death benefit nor the continuing insurance premium payments made once Thrivent Charitable is named owner.
What resources are available to me to learn more about giving life insurance?
If you would like to learn more before speaking with your financial advisor, we have several resources available for you to explore:
Gift of life insurance (PDF)
Leveraging a non-qualified annuity with life insurance (PDF)
Charitable strategies: Charitable life insurance (video)
Articles
Articles
We make the process easy
Using our charitable expertise we can help you make your individual vision a reality. We'll take the anxiety and complexity out of giving, so you can experience the joy of making a difference.
Contact us for support.
Donors must itemize deductions to receive a charitable income tax deduction. Charitable giving can result in tax, legal and financial consequences. Thrivent Charitable™ does not provide legal, accounting or tax advice. Consult your attorney or tax professional.