protect your church with pastor key person life insurance
TRANSCRIPT
Pastor Key Person Life Insurance
Pastors need life insurance to
protect both their church family
as well as their immediate
family.
Protect your Church
How a Key Person Life InsuranceHelps
Protect a Church
Finding an adequate replacement for a
minister who suddenly dies takes a great
deal of time and effort.
Key person coverage allows time for the
church to conduct a proper search for the
pastor’s successor.
Successor Pastor
Key person life insurance is an
insurance policy on the life of the
pastor; naming the church as owner,
payor, and beneficiary.
The death benefit will allow the
church to survive by funding church
operations until they can rebound
from the less attendance and lost
giving.
Day to Day Operations
Banks feels more comfortable
making or renewing a loan when a
collateral assignment is in place on
a key pesron policy.
The key person policy is purchased
by church on the life of the pastor.
The church is the policy owner,
beneficiary and premium payer.
Loan Protection
How Much Key PersonLife Insurance Coveragedoes our Pastor Require?
The amount of life insurance will
depend on both the church’s
ongoing annual income and the
amount of outstanding mortgage
debt.
Coverage is purchased based on
70% of the church’s current annual
income and debt load.
How much Life Insurance?
Pastor Personal LifeInsurance Policy
Protect your pastor’s family with a
seperate life insurance policy on your
minister, naming their spouse as the
beneficiary.
The church should also 1099 or W2
the pastor for the premium to
eliminate the taxation of the death
benefit to the beneficiary.
Personal Life Insurance
How much PersonalLife Insurance?
Plus, the proper insurance death benefit
needed to pay off any mortgage balance.
Mortgage
We recommend 57 x’s a minister’s
annual salary as an adequate
amount of life insurance.
Income
TERM LIFE A level death benefit
with guaranteed premiums for
10, 15, 20, or even 30 years.
PERMANENT LIFE Premium
and death benefit for life with cash
value accumulation.
Types of Life Insurance Policies
AFFORDABLE LIFE USA
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PASTOR KEY PERSON LIFE INSURANCE
Eric Van Haaften, LUTCF