For a donor like Pat, it’s usually about finding ways to give more.
“My parents instilled in me that you give when you can of your blessings,” she says, reflecting on her childhood home where her sisters, parents, grandparents and an aunt all lived together. Now retired, Pat frequently volunteers at the local food bank, hospital and her church.
When meeting with her financial advisor, Carl Etzler, Pat’s generous heart inspired her. “I asked Carl to review my plans to see if I can give more.
Her advisor asked her to think about organizations to aid from an eventual death benefit. Meanwhile, an acquaintance at her church passed away suddenly.
Pat told Carl, “I’m not going to wait.” Rather than delay the life insurance gift until age 70-1/2, when she could use qualified charitable distributions (QCDs) from her retirement account to pay life insurance premiums, Pat made the gift to Thrivent Charitable now in her 60s.
“You need to act because you just don’t know when you’ll be called home,” she says. “If the Holy Spirit is nudging you in that direction, you should take action when you can.”
How charitable life insurance works
A gift of life insurance through a donor-advised fund allows you to make a significant donation upon your death, larger than what might otherwise be possible. What’s more, it may provide several tax advantages:
- When you name Thrivent Charitable the primary beneficiary and owner of either a new life insurance contract or existing contract, your ongoing premium payments may qualify for a charitable tax deduction.
- At 70-1/2, you may use QCDs to pay premiums, which may reduce your taxable income in retirement.
- You can also give appreciated securities to pay your charitable life insurance premium. By gifting the securities, you potentially bypass the capital gains on them.
- When you make Thrivent Charitable the full or partial contingent beneficiary of your life insurance contract, you may receive an estate tax deduction*.
With each option, gifts of life insurance proceeds are gifted to the charities of your choosing at your passing, increasing your impact in your community far into the future.
Talk with your financial advisor about how a gift of life insurance could be the solution for you or
Thrivent provides advice and guidance through its Financial Planning Framework that generally includes a review and analysis of a client’s financial situation. A client may choose to further their planning engagement with Thrivent through its Dedicated Planning Services (an investment advisory service) that results in written recommendations for a fee.
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.