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Financial Planning

A Best Kept Insurance Secret

“There’s a time and place for everything.” You’ve probably heard that expression a bunch of times. In fact, you’ve probably used yourself, as well. That age old axiom applies to so many different things. And, life insurance is no exception.

Over the years, a variety of life insurance products have been created to meet the needs of individuals like yourself. That’s how the concept of survivorship life was conceived. Survivorship life (also known as second-to-die or last-to-die) is a unique type of life insurance that allows two people to be insured under one insurance policy. So, you may be wondering, what’s the big deal?

Survivorship life insurance pays a death benefit at the death of the second insured. Therefore, these types of policies are generally less expensive than two individual policies. In addition, even if one of the insureds is considered medically uninsurable, a policy can generally still be obtained. However, it’s important to recognize that survivorship life insurance is not for everyone.

Since these policies pay a death benefit at the second insured’s death, the uses of survivorship life are a little different than traditional “single life” policies. Their cost effectiveness generally make them an ideal tool for funding future estate tax liabilities, maximizing gifts to future generations or a favorite charity, or keeping a business within the family.

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