Second to Die Life Insurance
This type of coverage, often called second-to-die or survivorship life insurance insures two lives but pays one death benefit upon the death of the second insured individual. This coverage is mostly used in estate planning situations where federal estate tax may be due upon the death of the second spouse.
While estate tax continues to be a political issue, a look at changes that have occurred in recent history of when and how much tax is due make it clear that planning is here to stay.
Some uses for survivorship life insurance can include:
Equalizing shares where other assets may be left unequally to children of the deceased.
Where large qualified retirement plans are a major portion of the estate.
Certain “buy-sell” business situations where a married couple owns part of a business
Just as there are many uses for coverage, there are also numerous ways of structuring policies to fit each family situation. Talk to your independent life insurance agent today to find the right insurance for your needs.