Life Insurance Policy Donation Texas TX
Reader’s Question:
My friend is planning to donate her life insurance policy to a charity Texas. What are the things that she needs to consider?
Brat
Plano TX
If your friend would like to donate her insurance policy to a charitable institution, make sure that it is a non-profit organization and has a 501(c) (3) status. Term insurance policy prefers the least by these organizations. This is because of the inconvenience of this type of insurance
may give them once it expires. Smaller and local charitable institution prefers donations which they can use as soon as possible because they do not have the resources unlike larger
charitable institutions and universities. These organizations on the other hand may use the money on that policy for investment.
If the reason for donating the Texas life insurance is to obtain tax deduction, make sure that the name of the charity institution is shown as both the beneficiary and owner of the policy. If the name of the institution is not shown in this manner, you will not get a tax-reduction.