Naming the church as a contingent beneficiary means the church receives all or part of the proceeds if none of the other beneficiaries survive you. Term insurance is commonly called pure insurance because the premium is only to insure your life for a term of one year. Whole life is insurance coupled with an investment. Once you have paid your premium in full, you can surrender the policy and receive the cash value. All retirement funds allow you to name one or more primary, secondary, and contingent beneficiaries.
Retirement funds can be among the best assets to use for a charitable gift.
The reason involves the fact that they grow without paying income taxes. If you give them to an individual upon your death, income taxes and estate taxes may dramatically reduce the funds. Your loved ones may only receive a fraction of their present value. Check your situation with your accountant. However, any gifts of retirement funds to a church are made free of any income or estate tax because the gift to a church receives a charitable deduction.