Second To Die Life Insurance
Survivorship life insurance, also known as second-to-die insurance, this coverage can insure both you and your spouse under one policy, with the proceeds payable after the second death. In this type of life insurance policy, no death benefits are given when the first spouse dies, proceeds are only given when the second person insured passed away. Survivorship life insurance is ideal to married couples who are expecting to leave behind estates amounting to $1.5 million or higher. So, for married couples who are expecting high estate taxes to be assessed at the time that the second spouse dies, survivorship life insurance is an ideal planning vehicle.
In general, death benefits in survivorship life insurance are used for paying federal estate taxes and other things that the insured owed. This kind of life insurance policy was developed during the early part of 1980′s as an answer to a law that allows married couples to postpone the payment for estate taxes until both the husband and wife passed away.
To help people assess if they need survivorship life insurance, it is advisable to determine the health condition of a married couple. If your husband or wife does not have a good health, then it might be better to get survivorship life insurance instead of getting other types of insurance that are more expensive. Insurance companies are more liberal approving a policy for a single life policy, since two lives are insured and the benefit is paid at the death of the second. A proposed insured who may have been denied life insurance coverage by a single life insurance product, may be approved for coverage by a survivorship life insurance product. Keep in mind that not every person who has been declined for coverage for a single-life policy is necessarily eligible for coverage under a survivorship life insurance policy.With survivorship life insurance, two lives are being insured hence the policy owners are saving more instead of getting two separate life insurance policies; making that as one of the advantages of getting survivorship life insurance. Remember, if the other spouse is in good health and the other is not, then it’s advisable to get this kind of life insurance policy.
If you want more information on Survivorship Life Insurance, click on one of the adds on this site or you can check with your tax, legal, or financial adviser to help you assess your situation.
