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Life Insurance Extends Clients’ Generosity Goals

September 2023

While generosity is the common denominator for donors Chuck and Barb, their equation has changed with guidance from Financial Consultant Alex Gonzalez in the decades since they began partnering with Thrivent Charitable.

When recalling their original strategy, Chuck says, “We had established a donor-advised fund for our annual giving. Then Alex recommended adding a life insurance policy to continue making gifts after we’re gone. I had not been a proponent of life insurance, but this made a lot of sense for us.”

The couple created a charitable gift annuity with a gift of appreciated stock to Thrivent Charitable, and income from the annuity is used to pay premiums for a second-to-die life insurance contract.

If your clients give new or existing life insurance contracts, they may be able to take a charitable deduction for ongoing premium payments as they make them. Or they can name Thrivent Charitable as a beneficiary and designate all or a portion of the proceeds to their donor-advised fund.

Fast forward 15 years when Alex explained to his clients about using qualified charitable distributions (QCDs) to accomplish their annual giving goals rather than designating gifts from their donor-advised fund.

“We aren’t taxed on required minimum distributions from our IRA if they are given directly to charities as a QCD,” Chuck says. “Alex knows we want to maximize our charitable giving, and when he explained the benefits, we changed our strategy. Now we will use money accumulating in our donor-advised fund for legacy planning.”

Alex says, “All I have to do is be aware these strategies exist and then work with Thrivent Charitable on the technical aspects. When clients do this sort of planning, it’s a long-term relationship versus a transactional relationship, and that is fun.”

Barb says, “That’s why you have a financial advisor to take care of these things, and when Alex recommends Thrivent Charitable, it just reinforces our relationship with him.”

While cash donations are the most common way clients support the immediate need of organizations, there are several ways to increase the impact of their gifts. Thrivent Charitable accepts a wide range of noncash asset donations, including:

· Real estate
· Farmland/crops/livestock/equipment
· Life insurance
· Cryptocurrency
· Publicly traded stocks and mutual funds
· Privately held stock/family businesses
· Personal property and collectibles

Contact our team of gift planners to discuss unique solutions for your clients. Email us or call 800-365-4172 to get started.

This donor’s experience may not be the same as other donors and does not indicate future performance or success. Payout rates, charitable deductions and other benefits vary based on a number of factors.

A charitable gift annuity represents a charitable gift and is not considered an investment product.