— Sept. 24, 2023 —
Published on investopedia.com
by Mark P. Cussen
Life insurance can be an effective and convenient asset to give to a charity of your choice.
Millions of Americans make donations of cash and property to the charities of their choice each year. However, many donors are left wishing that they could do more for the charities that they love and support. Donors who wish to leverage their cash donations to charity can use life insurance to accomplish their goals. There are various methods for making life insurance donations and each has unique advantages.
KEY TAKEAWAYS
- Charitable giving riders pay a specific percentage of the policy’s face value to a qualified charity of the policyholder’s choice.
- Gifting a life insurance policy can cut the donor’s taxable estate.
- Naming the charity of your choice as the beneficiary of your life insurance policy is the simplest way to provide a charity with the death benefit proceeds from a policy.
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