Charitable Gift Life Insurance

Definition of "Charitable gift life insurance"

Dan Demeo real estate agent

Written by

Dan Demeoelite badge icon

Coldwell Banker Residential Brokerage - Demeo Realty Group

Life insurance policy given by a donor to a charity; donor only relinquishes the cash value and the cost of the premiums previously paid. The receiving charity's future value of the life insurance policy is the death benefit. Since the charity is the owner of the policy, it can:

  1. borrow against the cash value;
  2. surrender the policy for its then cash value;
  3. utilize its conversion privileges..
The donor can enjoy an income tax deduction for the value of the life insurance policy contributed to a qualified charity, provided the donor does not retain any ownership rights to that policy. If the donor makes an irrevocable transfer of the life insurance policy to a qualified charity and all rights of ownership have been forfeited to the charity, the death benefit will not be included in the donor's estate, provided the donor survives for at least three years after the date of transfer.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Return of a percentage of premium paid by a business firm if its loss record is better than the amount loaded into the basic premium. ...

Same as term Excess of Loss Reinsurance: method whereby an insurer pays the amount of each claim for each risk up to a limit determined in advance and the reinsurer pays the amount of the ...

Type of inland marine insurance that provides coverage for jewels, watches, gold, silver, platinum, pearls, precious and semiprecious stones. Property can be owned by the insured jeweler, ...

Monetary fund established to pay for claims that the insurance company is aware of (claims incurred or future claims) but that the insurance company has not yet settled. This reserve is ...

Assets, such as furniture and fixtures, that are not permitted by state law to be included in an insurance company's ANNUAL STATEMENT. ...

Same as term Tabular Plans: retrospective rating system with basic, minimum, and maximum premium rates listed in manual tables. Calculation of an individual premium involves adjusting the ...

Group that monitors government health insurance programs. Authorized by the 1972 amendment to the Social Security Act, PSROs were set up to cut costs and minimize abuses by checking on the ...

Prospective insured who completes and signs a written form containing personal statements about himself/herself. ...

Same as term Ceding Company: insurance company that transfers a risk to a reinsurance company. ...

Popular Insurance Questions