Baby Boomers Can Control Their Gifts Using Life Insurance
There isn’t much that surprises veteran wealth advisor Don Knoernschild after nearly 35 years with Thrivent Financial. But he recently learned something that changed his conversations about life insurance. And it’s given him another reason to introduce charitable clients to InFaith Community Foundation.
Simply put, clients want to retain control of the charities that benefit from their gifts. Don says his clients have often perceived donating life insurance as a negative in the past. They didn’t like that naming the charity as contract owner meant they could no longer change beneficiaries. Don was happy to discover that clients can pick, choose and change charities when they name InFaith as the owner of the contract, and can name multiple charities to benefit.
“I have found a niche telling my members they can change beneficiaries,” Don says.
Don recently worked on a joint case with another Thrivent FR. A client couple had received an inheritance – a common occurrence among baby boomers. When Don talked to them about options for the assets, it was clear they wanted to leave a legacy of some kind.
They ultimately decided on a $500,000 second-to-die life contract that names five charities as beneficiaries. The donors can change these charities at any time and decide how long the charities receive support from the death proceeds. In addition, the $12,000 premium may be tax deductible since InFaith is the contract owner.
Three Themes with Baby Boomers
Three themes surface when Don talks about his clients, many of whom are baby boomers nearing retirement or already there.
Charitable giving is not just for the wealthy. Don says, “Using life insurance allows my members to leverage a gift on a larger scale with affordable premium dollars.”
Talk early & often about planning. Clients who display charitable intent through volunteerism and generosity to churches and charities are open to discussing their goals. When the time is right, Don asks them, “If God called you home today, what would keep your gifts going?” The answer is oftentimes life insurance.
Education is key. Clients rarely know what options are available. Don suggests asking questions during fact-finding meetings and then discussing the answers with an InFaith gift planner. He says, “InFaith makes it easy to do business with them, and they really add credibility for my clients.”
GET STARTED. To learn more about InFaith or consult about specific clients, call our gift planners at 800-365-4172.