Larger Than Life
How much do you know about using a gift of life insurance to support a charitable organization?
1. A charitable organization cannot work with an outright gift of a paid-up life insurance policy.
2. Which of the following is a way to donate life insurance to a charitable organization?
- A. Take out a new policy with us as owner and beneficiary
- B. Donate a current policy and keep up the premiums
3. Which of the below is NOT an advantage of donating life insurance to a charitable organization?
- A. Prompt, confidential transfers outside of the probate process
- B. Relatively simple, cost-free procedures for naming us as a beneficiary or assigning ownership of a policy to it
- C. Allows you to make a significant charitable gift that otherwise might not be possible
4. If you name a charitable organization as the primary beneficiary of the life insurance contract
- A. It is a revocable arrangement for a future gift, not deductible for income tax purposes
- B. It is an irrevocable arrangement for a future gift
- C. It is deductible for income tax purposes
5. If you buy a new policy and donate the policy to our organization, the benefits include
- A. Tax deductions on your income tax return for the premiums you continue to pay
- B. Death benefits to your heirs
- D. It is not advisable to enter into a brand new life insurance contract with an organization
Copyright © The Stelter Company, All rights reserved.
The information in this publication is not intended as legal advice. For legal advice, please consult an
attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income tax include
federal taxes only. Individual state taxes and/or state law may impact your results.