We continue our discussion from yesterday with a few more ways to use a life insurance policy as a charity donation.
Naming a charity as a beneficiary is the easiest way to go about this. The downside to this tactic is that it doesn’t offer income tax advantages that accompany gifting a policy. It does, however, provide the utmost privacy of the transaction, and “transfer of assets from an insurance contract is also absolutely incontestable.” The donor still possesses power in 
this type of situation in that he/she may change the beneficiary should he/she choose to do so.
The last way to donate to charity via a life insurance policy is through gifting policy dividends. But know that taking this route won’t have the same benefit as the other ways we discussed. These dividends are “deductible in the same manner as premiums paid on a gifted policy, and this strategy does not require any additional cash outlay from the donor.” So think carefully before choosing this one.
As you can see, insurance policies are useful in ways you may not have even been aware of. If you’re interested in this decision or would like more information, do not hesitate to contact your insurance agent.
Filed Under:
Life Insurance,
agent,
health history,
height,
paramedic examination,
preferred,
premiums,
rating class,
standard,
super preferred,
table ratings,
weightJan.21, 2010
(Read part one of this post here.)
Life insurance policies that require a paramedic examination will cost less than those that don’t require one. In a paramedic exam, the examiner will come to you, and take a detailed health history, your height, weight, blood pressure will be measured. A urine and blood sample will be taken. You may also have a portable EKG depending on age and amount of insurance. The insurance company will pay for this exam an
d the results will help determine your rating class. You can always get a copy of your lab results from this exam.
Applicants for life insurance are given a rating class by the company. This class determines the premium you will pay. As explained before, many factors go into determining this rating. These classes are known as super preferred, preferred, and standard, with super preferred being the least expensive. After standard there are table ratings – from Table A (or 1) to Table P (16) although most carriers will decline you after Table 8. It is important to tell your agent all of your medical information so they can present it to the insurance company in the best light and be as truthful as possible! Once again, this is where an independent life insurance agent is your best resource. They know the ins and outs of which company will look at your issues most favorably, and can therefore help you obtain the best value. They can do your shopping to find your best choices. (A reputable agent will happily show you the quote so that you know you are getting a fair deal.)
