Leaving Life Insurance to Your Church: Beneficiary or Gift?

You can leave life insurance to your church in two main ways: name the church as a beneficiary on your policy, or transfer ownership of the policy to the church. Naming the church as a beneficiary is simple and you can change it later, but it gives you no income tax deduction while you are alive. Giving the policy away is permanent, and it may qualify for a charitable deduction if you itemize. Because tax rules depend on your situation, consult a tax professional before you act.

Many Christians see this kind of gift as an extension of lifelong giving. As 2 Corinthians 9:7 (KJV) puts it, "Every man according as he purposeth in his heart, so let him give; not grudgingly, or of necessity: for God loveth a cheerful giver."

Can you name your church as a life insurance beneficiary?

Yes. When you own a policy on your own life, you can generally name almost anyone as the beneficiary, including a church. The NAIC's guidelines on charitable gifts of life insurance note that "everyone has an insurable interest in his or her own life," and that the insured can generally make the proceeds payable to whomever he or she wants, "including a favorite charity."

To name your church, ask your insurance company for a change of beneficiary form. Then:

1. Use the church's full legal name. This may differ from the name on the sign out front. Ask the church office.
2. Add the church's address and tax ID number (EIN). This helps the insurer find and pay the right organization.
3. Choose a share. You can leave the church the whole benefit or a percentage, such as 10 percent, with the rest going to family.
4. Name a contingent beneficiary. This is who gets paid if a primary beneficiary no longer exists.
5. Keep a copy and tell the church. The NAIC recommends letting beneficiaries know about a policy, checking policies once a year, and updating them after major life events.

Because you still own the policy, you can change the beneficiary at any time. That flexibility is the main reason many people choose this route.

What is the difference between naming the church and giving it the policy?

The key difference is control. When you name the church as beneficiary, you keep ownership. When you transfer ownership, the church owns the policy from that day forward.

According to the NAIC guidelines, once a policy is given away, "the ownership of the policy and all ownership rights under the policy, including the ability to change the beneficiary, are forever transferred from the donor to the recipient."

How do you transfer ownership of a policy to a church?

You transfer ownership by signing an absolute assignment or change-of-owner form from your insurer, naming the church as the new owner. The NAIC describes two common approaches: giving an existing policy through an "irrevocable assignment to the charity," or buying a new policy that the charity owns on your life, with your consent.

Before you sign, know that state insurable interest laws apply. The NAIC explains that many states specifically include charities in their definition of insurable interest, while others let a charity own a policy on someone who consents. It adds that "many state laws require that consent to be in writing." Your insurer and your state insurance department can tell you what applies where you live.

Also ask your church whether it accepts gifts of life insurance. Some congregations have a gift policy or work with a denominational foundation that handles these gifts.

Is giving life insurance to your church tax deductible?

It can be, but only in certain cases, and the rules are detailed. Here is what IRS Publication 526 (2025) says in general terms.

Churches qualify. Publication 526 lists "churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations" as qualified organizations that can receive deductible contributions.

You usually must itemize. Publication 526 says that "generally, to deduct a charitable contribution, you must itemize deductions on Schedule A (Form 1040)." A gift of a policy is a gift of property, so it follows the itemized rules.

New 2026 rule for non-itemizers. Under the law the IRS calls the Working Families Tax Cuts, starting with tax year 2026, people who do not itemize may deduct up to $1,000 of cash gifts to eligible charitable organizations ($2,000 for married couples filing jointly). The IRS says noncash gifts, such as property, do not qualify. So a gift of the policy itself would not count, but cash you give your church, including cash it uses to pay premiums on a policy it owns, may. Ask a tax professional how this applies to you.

Naming the church as beneficiary gives no income tax deduction now. Publication 526 says you generally "can't deduct a contribution of less than your entire interest in property." If you keep ownership and the right to change the beneficiary, you have not given the church your entire interest.

Deduction amounts for a policy you give away can be limited. Publication 526 has special rules for "ordinary income property," which it says generally limit the deduction to your basis in the property. Tax advisers commonly apply this rule to life insurance, which can mean a deduction of the lesser of the policy's value or roughly what you have paid in. A tax professional can figure your actual number.

Paperwork matters. Publication 526 requires a written acknowledgment from the church for any gift of $250 or more, Form 8283 if your noncash gifts total more than $500, and, for noncash gifts over $5,000, a qualified appraisal and Section B of Form 8283.

Estate tax. Federal law at 26 U.S.C. § 2055 allows an estate tax deduction for transfers to organizations "organized and operated exclusively for religious" and other charitable purposes. For 2026, the IRS lists a $15,000,000 basic exclusion amount, so most families will not owe federal estate tax either way. Check the IRS site for the current figure, and talk with an estate attorney if your estate is large.

For how life insurance is taxed more broadly, see is life insurance taxable.

What should you consider before giving life insurance to a church?

Make sure your family is cared for first, then decide how much your church should receive. Scripture holds both values together: 1 Timothy 5:8 stresses providing "for those of his own house," while Galatians 6:10 urges us to "do good unto all men, especially unto them who are of the household of faith."

The NAIC guidelines raise several practical points worth weighing:

• Your family's needs. Would giving away a policy leave a spouse or dependents without enough coverage?
• Your health. If you give a policy away, could you still qualify for new coverage if your family needed it?
• The type of policy. A term policy may end before you die. Whole life policies are designed to last your lifetime. See term vs whole life insurance.
• The church's future. The NAIC suggests considering how long the charity has existed and its plans, since it must still exist when the benefit is paid.
• Tax advice. The NAIC says the donor "should seek the advice of a tax expert" for any gift of this kind.

What is a simple step-by-step plan?

A clear plan keeps your gift on track and avoids surprises for your family and your church.

1. Pray and decide on the goal. A share of the death benefit, or the whole policy?
2. Talk with your family. Explain your wishes so there is no confusion later.
3. Talk with church leaders. Confirm the legal name, EIN, and whether the church accepts policy gifts.
4. Meet with a tax professional. Especially before transferring ownership.
5. Complete your insurer's forms. Beneficiary change or ownership assignment.
6. Keep records. Save the insurer's confirmation and any written acknowledgment from the church.
7. Review each year. Update after births, deaths, marriages, or a church move.

If you are exploring faith-based insurers, our fact-based look at Christian life insurance companies may help. For the Scripture behind planning, read what the Bible says about life insurance, and find more on our Christian life insurance hub.