Most joint life insurance policies are what’s known as “first to die” policies. As the unambiguous nickname suggests, a first to die policy is designed to provide for the remaining spouse after the first passes.
A joint life insurance policy is a time-tested way of providing for a remaining spouse. But without careful planning, a typical joint life policy might leave a burden for surviving children or other family members.
A survivorship life insurance policy works differently than a first to die policy. Also called a “last to die” policy, a survivorship policy provides a death benefit only when both insured spouses have passed. A survivorship policy doesn’t pay a death benefit to either spouse but rather to a separate named beneficiary.
You’ll find survivorship life insurance referred to as:
- Joint Survivor Life Insurance
- Second-to-Die Life Insurance
- Variable Survivorship Insurance
Reasons to Buy Survivorship Life Insurance
We all have our reasons for buying a life insurance policy, and often have someone in mind who we want to protect and provide for. Those reasons often dictate the best type of policy – or the best combination of policies – that can meet our goals.
A survivorship policy is well-suited to any of the following considerations, perhaps in combination with other policies:
- Final expenses
- Estate taxes
- Lingering medical expenses
- Payment of debt
- Transfer of wealth
Benefits of Survivorship Life Insurance
- A survivorship life policy can be an effective way to transfer wealth as part of a financial strategy.
- Life insurance can be difficult to purchase for individuals with certain health conditions. Because a survivorship life insurance policy is underwriting coverage based on two individuals, it may be possible to purchase coverage for someone who couldn’t easily be insured otherwise.
- As a permanent life insurance policy, a survivorship life policy builds cash value that can be accessed if needed in certain situations.
- Costs can be lower for a survivorship life policy than insuring two spouses individually.
We help protect families all over the country. Let us help you . Contact us today
Click here and get a low life insurance rate in seconds - apply in minutes.
Quick Quote & Apply.
No Exam Carriers: SBLI and Principal
Visit us online at WFGInsuranceQuotes.com or call us at 855.236.2992