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.”
Chaire de recherche en fiscalité et en finances publiques de l’École de gestion de l’Université de Sherbrooke, “Crédit d’impôt pour dons.”
Canadian Red Cross, “Gift of Life Insurance.”
HEC Montréal, “Gifts of Life Insurance.”
SFL, “Donations after death: an important tool for charitable organizations… and for you.”