Second to Die Policy
A type of Life insurance on two people (usually married) that provides benefits to the heir only after the surviving spouse dies. This differs from regular life insurance from surviving partner doesn’t receive any benefits their spouse dies. Thus, second to die insurance uses for Estate planning as well.
I could be designed to pay estate taxes or support any surviving children. It is also called “Dual Life insurance” or “Survivorship Insurance.”
Second to Die policy is also known as Survivorship life insurance. It is a kind of joint permanent life insurance that pays out upon the death of both insured parties. It is mostly for husband and wife.the policy death benefit is paid only after both die. The joint insurance policy would pay death benefit only after the last insured dies.
A second-to-die life insurance policy will help pay estate taxes for a very low comparative cost. In other words, it’s a great value for those that think they might have to pay the estate tax.
It is less expensive than comparatively with other insurance plans. due to the fact that two lives are insured instead of just one, it is less risky for the life insurance company, but it also means that the life insurance underwriting process (the process which determines if you qualify) is usually easier. The insurance company will usually focus on the youngest or healthiest of the two insured individuals.