Life Insurance for Ministers (Discounts & Rates)

Looking for a good deal on life insurance for ministers? A church should consider two separate pastor life insurance policies to cover both the church family and the pastor’s immediate family. Key person life insurance and individual life insurance policies can be underwritten at the same time. Learn more.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Apr 22, 2021

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The Highlights

  • Two life insurance policies are needed for ministers which can be underwritten at the same time.
  • Key person life insurance protects the church from common problems after sudden losses of a pastor.
  • Individual life insurance protects the pastor’s family from loss of income and unexpected expenses.

Life insurance for ministers is necessary to protect the church family and the immediate family. Many small congregations don’t offer key person life insurance or personal life insurance for pastors.

These two different needs are usually covered by two separate policies simultaneously. However, you can plan to protect your church and your family.

Many companies sell life insurance. So it’s difficult for you to know which pastor life insurance company can offer the best insurance for ministers. We’ve already reviewed the best life insurance companies for you.

Find affordable minister life insurance rates that cover the unique needs of a pastor when you enter your ZIP code.

What’s the best life insurance for ministers?

A church should consider a separate life insurance and key person life insurance policy. Both policies can be underwritten at the same time. Both key person and personal life insurance for pastors are often written as term life insurance.

Term life can be better than whole life insurance options. Make sure it’s the right option for you though.

Some churches elect the more expensive permanent pastor life insurance coverage to accumulate a cash value that the church retains ownership of. A combination strategy is also popular because the church needs are different from the pastor’s personal needs.

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How does a pastor’s life insurance policy protect the family?

The personal life insurance for pastors helps protect family obligations. The minister is able to own the policy and name a spouse and children as the beneficiaries.

Many experts provide coverage recommendations. However, financial situations will dictate how much coverage is actually needed. Determine the financial strain your death would cause the family and if your spouse works in the same church.

Life insurance can help protect your loved ones with funds to replace your income, pay the mortgage or college tuition, and cover final expenses.

How does key person life insurance protect the church?

Key person insurance is a life insurance policy that provides the capital needed to allow surviving members to keep the church running by paying employees and making loan payments.

The church can solve a few common problems just by having a key person life insurance policy.

  • Find an adequate replacement pastor.
  • Fund church operations until attendance and donations rebound.
  • Loan protection for the church to finance projects.

The payer, owner, and beneficiary of this life insurance policy will normally be the church. The amount of key person life insurance for pastors needed will depend on the church’s annual income and outstanding debt.

Pastor life insurance companies typically allow a death benefit of 70% of income and debt.

The church should also issue either a 1099 or W-2 to the pastor for the life insurance rates to eliminate possible taxes due to the IRS on the death benefit to the beneficiary.

Not many people get two families to protect. Protect yours. Before you buy minister life insurance, shop around to get the best rates and coverage.

Compare pastor life insurance quotes when you enter your ZIP code today.

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Your one-stop online insurance guide. Get free quotes now!

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