Survivorship Life Insurance

Survivorship life insurance - also known as second to die or survivor insurance - provides one policy that insures the lives of two individuals, who are usually spouses. No proceeds are paid when the first spouse dies. The policy remains in effect and premiums may need to be paid. The death benefit is not paid to the beneficiary until the death of the second insured.

An Estate-Planning Tool
For couples who expect that substantial estate taxes will be assessed on the death of the second spouse, survivorship life insurance is an attractive estate planning vehicle. By providing a death benefit upon the death of the surviving insured, survivorship policies can be used to pay sizeable estate taxes and other expenses at the death of the second spouse.

Your financial, legal and tax advisors can assist you and help you decide if survivorship insurance is right for your estate planning needs.

Health Considerations
Survivorship insurance may be a good strategy in cases where one member of a couple is in less than good health, making other types of insurance extremely expensive. Since two lives are insured, premiums for survivorship life policies are relatively low compared to individual policies on each spouse’s life. Therefore, if the other spouse is in reasonably good health, the couple can usually obtain survivorship life insurance.

Types Features
Insures two lives, typically a husband and wife, under one life insurance policy. Pays a death benefit on the death of the surviving insured. Generally used to pay estate taxes and other estate settlement costs