What Is Survivorship Life Insurance?

By Author: Brian Reed
Total Articles: 6
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Survivorship Life Insurance, also known as Joint and Survivor Insurance or Second to Die Insurance, is a life insurance policy that insures the lives of two people, typically husband and wife. When two people obtain survivorship life insurance, the beneficiary doesn't receive payment until both individuals die. These policies are available as whole or universal insurance policies and are generally more affordable than two individual policies. Because survivorship life insurance doesn't pay until the second person dies, it is quite often used as an estate planning tool to pay or assist payment of estate taxes. Joint survivorship life insurance policies are often smart choices for wealthy people who want to put the proceeds of a life insurance policy into a trust, which would be used to pay the estate tax on the estate upon the death of the second insured person. With careful planning, this type of insurance can be used to preserve your net worth for your heirs. Another way that survivorship life insurance is commonly used is to ensure that funds will be available to care for and provide financial security for a special-needs ...
... child after the death of both parents. However, when seeking this type of protection, it is also wise to get individual life insurance and disability, as well, to protect each parent's income. Survivorship insurance is a useful part of a solid financial strategy for the future because it can be used as a part of a discounted dollars strategy. Basically, individuals can use the policy to pay pennies on the dollar now in order to have 100 cents on their dollar when they are needed to pay estate taxes. If you paid $10,000 per year in a survivorship life policy for $1,000,000 of insurance, you are essentially paying one percent a year for 100 percent later. If your premium is guaranteed and if you and your spouse live for 30 years, for example, you would have paid 30 cents for every dollar. If you set the policy up with third party ownership, the $1,000,000 could be set up to be both income tax free and not subject to estate taxes. These are just some of the ways that survivorship insurance can be used as a part of a solid financial strategy. If you want the most competitive insurance quotes on second to die policies, lifeinsure.com has access to the leading and most competitive joint and survivorship life policies available. For years, Lifeinsure.com has been an online life insurance brokerage company dedicated to helping visitors finds low cost life insurance policies to suit their needs. Lifeinsure.com is one of the top life insurance brokerage companies on the Internet, helping people find information for the right life insurance plan for their needs.