Marla and Wayne purchased a life insurance policy many years ago to create security for their children's future. As the children grew up, married, found good jobs and accumulated significant assets, the insurance was no longer needed for its original purpose.
Marla: We helped with a church plant in our younger days and wanted to know if there was any benefit to giving our policy away to help start other churches in the US and around the world. We love the Lord and understand the importance of a healthy gospel-centered church in a community.
Wayne: I wasn't ready to part with the insurance quite yet. I wanted to preserve the option of giving it to our family if someone needed extra help down the road. We both wondered if there was a way we could commit now to help the work of the Evangelical Free Church of America but make our gift at a later date when it was clear the policy wouldn't be used.
The gift planner at the EFCA Foundation told them that they could include a bequest of insurance today that would help achieve their personal and charitable goals. The bequest could be made by simply naming The Evangelical Free Church of America as beneficiary of their policy. With the beneficiary designation unchanged during life, the insurance proceeds would go to help the EFCA's future work. In addition, their estate could benefit from an estate tax charitable deduction based on the value of the proceeds paid.
Marla: The insurance bequest made sense to us.
Wayne: I also liked the fact that our estate would potentially benefit from tax savings, which would help to preserve other assets intended for our family.