Wealth Replacement
Wealth Replacement has to do with replacing cash donations with life insurance so as not to reduce inheritance for heirs. If a person wishes to benefit a charity - especially if he wants to see his donation do some good while he is still alive to see it happen - one of the things that gives him pause is the prospect of diminishing the inheritance of his heirs.
For those prospective benefactors who are still insurable, life insurance payable to his heirs in an amount equal to or greater than the gift can solve this problem. If the life insurance is Indexed Universal Life (IUL), the use of leverage may make it possible for him to fund only the first few premiums in cash, and then see the policy be able to support itself!
|