People who donate or bequeath substantial amounts to charity may want to replace that wealth, for their heirs. Typically, wealth replacement strategies use life insurance. If you give, say, $50,000 to charity, you can insure your life for $50,000. At your death, the policy’s beneficiary will receive $50,000, making up for the $50,000 you give to charity.

Life insurance is ideal for several reasons:

* You can be confident of the payoff amount. With a $50,000 policy, you know your beneficiary will receive $50,000. You can’t say the same for other investments.

* Your wealth replacement plan will go into effect right away. Your beneficiary will receive the $50,000 death benefit, in the above example, even if you die after paying only a few premiums.

* You’ll know that the money will be received at your death. Therefore, you’ll know that your policy beneficiary will get the insurance proceeds right away.

As long as you pay the policy premiums, you can count on wealth replacement via life insurance.