Financial & Estate Planning

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, making up for what you donated.

Life insurance is ideal for several reasons:


* You can be confident of the payoff amount. You know your beneficiary will receive the amount you choose (as long as you have paid the premiums). You can’t say the same for 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 your policy beneficiary will get the insurance proceeds right away upon your death; there will be no holdup as your estate is settled as there might be for some other form of asset.