Test Your Knowledge: Life Insurance Quiz

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
C. both A and B
D. none of the above

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
D. none of the above

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.
D. none of the above

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.
C. both A and B
D. It is not advisable to enter into a brand new life insurance contract with an organization.
(Answers below)

Answers

1. False. The organization will either take a policy's cash value or retain the policy for its face value after your lifetime.
2. C
3. D
4. A
5. A

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