Aug 20
What is survivorship life insurance?
This is a great question!
Survivorship life insurance is a type of that covers two lives, where the death benefit is payable on the death of the second life. It’s commonly used in estate planning, where the first spouse to die leaves his or her estate to the surviving spouse, utilizing the unlimited marital estate tax deduction; the estate then becomes taxable upon the death of the second spouse.
It’s a great tool in estate planning. Potential buyers of survivorship life insurance should consider several factors. Individuals with taxable estates should be interested in this type of life insurance because premiums are considerably lower than the premiums for traditional whole life insurance, and individual-term life insurance premiums are much higher. For more information, contact your accountant or life insurance agent as they would be able to help you figure out if this type of insurance is best for you.
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