Survivorship Life: Expanding Your Insurance Horizons

Over the years, a variety of life insurance products have been created to help meet the demands of individuals with specific needs and circumstances. Survivorship life (also known as second-to-die or last-to-die coverage) is one type of insurance product. Its unique feature allows two people to be insured under one insurance policy.

Different from Traditional "Single Life" Policies

Survivorship life insurance pays a death benefit at the death of the second insured. This type of coverage is generally less expensive than two individual policies and may result in significant cost savings. In addition, a policy can generally be obtained even if one of the insured individuals is considered medically uninsurable. It is important, however, to recognize that survivorship life insurance may not be for everyone.

Since this policy pays a death benefit at the death of the second insured, the uses of survivorship life are a little different from traditional "single life" policies. For example, the cost-effectiveness of survivorship life generally makes it useful for funding future estate tax payments, maximizing gifts to future generations or a favorite charity, or preserving a family business.

Consider the Benefits

It is always prudent to review your insurance coverage regularly. Periodic assessments may help you determine whether survivorship life insurance will help meet your current needs, as well as your future goals and objectives. And, when you buy the coverage that works for you, the benefits may far exceed the costs.

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