Justin explains survivorship life insurance, and how it can help with your estate planning.
Survivorship life insurance, also known as second to die life insurance, is a great product for estate planning. Survivorship life insurance only pays the benefit to the beneficiary when all the policyholders or insured people on the policy have died. It will not pay the death benefit if only one of the insured people dies.
Survivorship life insurance is often chosen when the purpose of the insurance is to leave money to a couples’ heirs, which is why it only pays the death benefit when both spouses have died. Another advantage of the survivorship life insurance policy is that when one spouse has died, if there is cash value built up in the policy then the surviving spouse may be able to cash in on the cash value of the policy as needed.
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