Life Insurance
Test your knowledge on the benefits and drawbacks of Life Insurance.
- 1.
A charitable organization cannot work with an outright gift of a paid-up life insurance policy.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The organization will either take a policy's cash value or retain the policy for its face value after your lifetime.Rate this question:
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- 2.
Which of the following is a way to donate life insurance to a charitable organization?
- A.
Take out a new policy with the organization as owner and beneficiary.
- B.
Donate a current policy and keep up the premiums.
- C.
Both A and B are correct
- D.
None of the Above
Correct Answer
C. Both A and B are correct -
- 3.
Which of the following is not an example 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 the organization as the beneficiary or assigning ownership of a policy to an organization.
- C.
Allows you to make a significant charitable gift that otherwise might not be possible.
- D.
None of the Above
Correct Answer
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 tax deductable for income tax purposes
- D.
None of the above
Correct Answer
A. It is a revocable arrangement for a future gift, not deductible for income tax purposes. -
- 5.
If you buy a new policy and donate the policy to the organization of your choice, 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 new life insurance contract with an organization.
Correct Answer
A. Tax deductions on your income tax return for the premiums you continue to pay. -
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Current Version
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Jan 17, 2013Quiz Edited by
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Aug 16, 2010Quiz Created by
Solutionsmatter
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