WHAT IF YOU COULD LEAVE BEHIND more than just financial security for your family — what if you could also fund the spread of the Gospel long after you’ve passed? These are not mutually exclusive propositions. Let’s take a look at how you can do both — protect your family, while also expanding the Kingdom.

Life insurance is often seen as just a tool for providing financial security to loved ones after death, such as paying off a mortgage and paying off student loans. However, it is often lost on so many how life insurance can also be a powerful vehicle for funding ministries and supporting the spread of the Gospel. By planning ahead, you can use life insurance to leave a lasting legacy that extends far beyond your family and into the work of the Kingdom.

Unlike other assets, life insurance death benefits are generally paid out tax-free and can be directed toward Kingdom causes through careful planning. This allows you to have a meaningful impact on ministries and organizations you care about.

Here are the common strategies you can use to direct your life insurance benefits toward Kingdom work:

1. Direct Beneficiary Designations:
One of the simplest ways to support ministry through life insurance is by naming a church, missions organization, or ministry as a direct beneficiary of your policy. When you pass, the death benefit is paid out directly to the ministry, bypassing probate and ensuring the funds are used immediately for their intended purpose. By naming ministries as beneficiaries, you can ensure that your resources go directly to support the work of spreading the Gospel, without delays or legal obstacles.

2. Partial Beneficiary Splits:
Another option is to split your life insurance policy’s benefits between family members and ministries. This way, you can provide for your loved ones while also leaving a substantial gift to support the work of the Kingdom. For example, you could designate 90% of your policy to your children and 10% to a missions organization or church. This approach ensures that both your family and ministry are blessed by your life insurance policy.

3. Gifting Your Policy During Lifetime:
You don’t have to wait until after your death to make a Kingdom impact with life insurance. You can transfer ownership of an existing policy now to a ministry or charity, making a substantial gift while you are still alive. This can also provide you with a current income tax deduction based on the value of the policy. In addition, your premium payments may be tax-deductible, further enhancing your contribution. This approach allows you to make a meaningful contribution today while ensuring that the benefits are realized after your lifetime.

4. Purchasing a New Policy for Charity:
If you don’t currently have life insurance or don’t want to part with an existing policy, you can purchase a new policy and name a ministry as the owner and beneficiary. This is an effective way to provide a significant gift to your chosen ministry with minimal ongoing costs to you.

For example, you could take out a policy and name your church or a missions organization as the beneficiary. The funds would then be used for outreach, missions, or other Gospel-centered work.

5. Create an Irrevocable Life Insurance Trust:
For those looking to maximize the impact of their life insurance policies, Irrevocable Life Insurance Trusts (ILITs) can be an effective strategy. An ILIT allows a trust — not you — to own the life insurance policy. This approach offers several important benefits:

• Tax-Free Benefit: One of the key advantages of using an ILIT is that the death benefit is generally exempt from estate taxes, which can be as high as 40%. By placing the policy in an ILIT, the death benefit goes directly to your designated ministry beneficiaries, without being subject to these taxes.

• Flexibility in Distribution: The ILIT can be structured to distribute the death benefit to specific ministries, church plants, or other charitable causes, according to your wishes. This ensures that your Kingdom-focused goals are met.

• Creditor Protection: Since the trust owns the policy, the death benefit is protected from creditors and legal claims. This provides added security for your beneficiaries.

Setting up an ILIT involves choosing a trustee (who cannot be you) to manage the policy and oversee the distribution of funds. While the process can require legal assistance, the tax benefits and long-term impact on ministry make it a powerful tool for planned giving.

IT’S MORE THAN A POLICY... IT’S YOUR KINGDOM LEGACY.
Life insurance can be much more than a financial tool for your family. It can be an intentional part of your estate planning, enabling you to leave a legacy that extends beyond your family and into the work of the Kingdom. By strategically planning your life insurance policy, you can ensure that your resources will continue to support ministries, missions, and church planting efforts for generations to come.

NEXT STEPS FOR KINGDOM-MINDED LIFE INSURANCE PLANNING:
• Review your life insurance policies and consider naming ministries as beneficiaries.
• Consult with BFCAL, a financial advisor, or estate planning attorney about setting up an Irrevocable Life Insurance Trust (ILIT).
• Reflect on how your resources can best support missions and other Gospel-centered causes.

Courtney M. Coates, Esq. is BFCAL’s Senior Vice President and Chief Legal Officer.
If you would like to contact him about legacy giving, you can reach him at .