How to Leave a Nonprofit as a Beneficiary of a Life Insurance Policy

Did you know that you can make a lasting impact by listing a nonprofit organization as a beneficiary of your life insurance policy?

This simple yet powerful form of giving can provide an average payout of $168,000 — a significant gift that could secure the future of the causes you care about.

If you’re passionate about helping animals or protecting the environment, this method allows you to leave a meaningful legacy with little to no financial burden during your lifetime.

Nonprofits that support farmed animals or the environment often struggle due to a lack of funding, and legacy gifts can be a lifeline, ensuring their work continues for decades to come.

Discover how a Legacy Giving Program can help you create long-term financial stability for your favorite charities and make an enduring difference. 🌱

Leaving a nonprofit as a beneficiary of a life insurance policy is a simple and impactful way to support their mission. Here’s a step-by-step guide:

  1. Contact Your Insurance Provider:

    • Reach out to your life insurance company to request a Beneficiary Designation Form.

  2. Include the Nonprofit's Information:

    • You will need to provide the following details:
      • Full Name of Nonprofit: e.g., Animal Rescue Foundation
      • Address: e.g., 123 Main Street, City, State, ZIP Code
      • Tax ID Number (EIN): The nonprofit’s Employer Identification Number
      • Relationship to You: List as "Charitable Organization"

  3. Specify the Percentage or Amount:

    • Decide whether you want to:
      • Leave the entire policy payout to the nonprofit.
      • Designate a percentage (e.g., 50%) to the nonprofit and the rest to family members or other beneficiaries.

  4. Submit the Form:

    • Return the completed Beneficiary Designation Form to your insurance company.

  5. Notify the Nonprofit:

    • Inform the nonprofit of your decision so they can acknowledge your generous commitment and ensure your gift is used according to your wishes.

  6. Review Periodically:

    • Review your beneficiary designation regularly and update it if your circumstances or intentions change.

Benefits of Naming a Nonprofit as a Beneficiary

  1. Simple Process: Easy to set up or modify without changing your will.
  2. Tax Advantages: Potential estate tax benefits by reducing the taxable value of your estate.
  3. Meaningful Impact: Provides a significant gift to the nonprofit, supporting their mission long into the future.
  4. Flexible Giving: Allows you to support both your loved ones and a cause you care about.

Is there a charity you care about and want to help? Non-profit organizations who build Legacy Giving Programs open up the doors to secure long-term donations that will help them thrive and expand their programs for decades to come.

Part of having a legacy giving program is a dedicated page on their website that provides all their followers the necessary information to include them as a beneficiary in their life insurance policies (Legal name, address, tax ID number).

We created a free guide that provides non-profits all the information needed to start a legacy giving program. You can download it here or by clicking on the image below.

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