Why and How to Talk to Donors About Naming Your Nonprofit in Their Life Insurance Policy

When it comes to Planned Giving, life insurance and annuities are often overlooked—but it can be one of the simplest and most impactful ways for donors to leave a lasting legacy. 

At the recent Wright Collective Spring Gathering, Eric G. Werner, First Vice President, Wealth Management Senior Institutional Consultant from Raymond James, reminded us of “the estimated $3 trillion of commercial insurance assets – life and annuity policies -  that have beneficiary designations.”

Quick refresher… What is an insurance beneficiary? 

It’s the person or organization (such as a charity) that is contractually designated to receive the death benefit payout if the policy owner passes away. And just as the policy holder can leave assets in a will to more than one person, they can designate multiple people or entities as beneficiaries in a policy.  

This allows donors to support the causes they care most about—including your organization!

Life Insurance: A Flexible, Accessible Way to Give

As explained in this article by New York Life, anyone can name a charity (or several) as a beneficiary of their life insurance policy. Unlike more complex estate planning tools, this option doesn’t require a lawyer and is typically as simple as submitting a form to the insurance provider.

And here’s the key point: donors don’t need to name just one organization. They can divide the benefit into percentages and support multiple missions.

How to Talk About This with Donors

Most people aren’t aware of this option. Here’s how you can bring it up—gently and clearly:

1. Include It in Your Planned Giving Materials

Whether it’s on your website, in brochures, or as a footnote in an email, let donors know:

“Did you know you can name our organization as a beneficiary of your life insurance policy—along with others you care about?”

Encourage them to consider a percentage gift (e.g., 10%) so they don’t feel like they have to choose between their favorite causes.

2. Emphasize Flexibility and Accessibility

Make it clear that:

• It doesn't require a will or a lawyer.

• The donor retains control and can change beneficiaries at any time.

• They can support multiple organizations (along with family members or other beneficiaries) through one policy.

  
  

Here’s some sample language:

“Naming a nonprofit as a beneficiary on a life insurance policy is a powerful and flexible way to leave a legacy—no legal fees or complicated paperwork required. You can even name several organizations by designating percentage amounts.”

3. Acknowledge Other Commitments

Some donors may already have policies designated to family. In that case, suggest adding your nonprofit as a contingent beneficiary—meaning the gift would go to your organization only if the primary beneficiaries pass away first.

From the New York Life article:

“You can name a nonprofit as a contingent beneficiary so they receive the proceeds only if your primary beneficiaries pass away before you do.”

This option respects their existing plans while keeping your organization in the picture.

Be Prepared to Guide—Not Pressure

When discussing planned giving, always lead with gratitude and education, not urgency or pressure. You’re not asking for a gift today—you’re inviting supporters to make a long-term impact.

Offer to:

• Provide sample beneficiary form language

• Share your organization’s legal name and EIN

• Point them toward their insurance provider for the next steps

A Sample Message You Can Use:

Make a Future Impact—Without Changing Your Current Budget 

Did you know you can list our organization as a partial beneficiary of your life insurance policy? It’s a meaningful way to support our mission—without affecting your finances today. Many donors even list multiple nonprofits they love by assigning a percentage to each.

Ask your insurance provider how to get started—or reach out to us if you’d like more information.

Final Thoughts

Life insurance isn’t just for family. It can also be a powerful legacy tool for philanthropy—especially when donors understand they can support more than one cause.

As a nonprofit, you don’t have to be an expert in insurance. But by raising awareness and providing simple, clear information, you make it easier for donors to take action.

Want to grow your planned giving program? Start by planting seeds today—like a simple mention of life insurance as a giving option. Connect with Wright Collective to strengthen your planned giving strategy.

Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. You should discuss any tax or legal matters with the appropriate professional. Any opinions are those of Eric Werner and not necessarily those of Raymond James.

Raymond James & Associates, Inc., 17 ½ Lebanon St, Hanover NH 03755

Phone: 603.427.8899