Answer: $0
You can only receive a tax credit for transferring a policy or paying the premiums if the charitable organization becomes the policy’s owner and irrevocable beneficiary. Here, since you remain the owner and the beneficiary designation is revocable, a charitable tax receipt will only be issued upon payment of the death benefit. Your estate will be able to use the receipt to claim a tax credit at that time.
Read this article to learn more about donating life insurance.
The following sources were used to prepare this article:
Centraide, “Gifts of Life Insurance , You will be redirected to an external website..”
Chaire de recherche en fiscalité et en finances publiques de l’École de gestion de l’Université de Sherbrooke, “Crédit d’impôt pour dons , You will be redirected to an external website..”
Canadian Red Cross, “Gift of Life Insurance , You will be redirected to an external website..”
HEC Montréal, “Gifts of Life Insurance , You will be redirected to an external website..”
SFL, “Donations after death: an important tool for charitable organizations… and for you.”