Survivorship life insurance, also known as a second-to-die policy, is permanent insurance that covers the lives of two people and pays the death benefit only after the death of the second person.
Survivorship life may be appropriate for married couples with substantial wealth if estate taxes might be due after the death of the second person.
The death benefit would be available to cover the amount due at the federal or state level, protecting some or all of the assets from having to be sold to cover these tax bills.
However, the premiums on survivorship life policies are often higher than the cost of other types of permanent insurance.
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- Accelerated death benefit, Asset, Death benefit, Decreasing term insurance, Face value, Financial instrument, General account, Insurance trust, Insured bond, Life settlement, Lump sum, Variable life insurance, Viatical settlement
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