Life Insurance Basics
What is a second-to-die life insurance policy?
A second-to-die (survivorship) life insurance policy covers two people and pays the death benefit when the second person dies. Second-to-die policies are commonly used for estate planning — the death benefit pays estate taxes after both spouses die. Second-to-die policies have lower premiums than first-to-die policies.
Key Points
- Second-to-die: pays death benefit when the second person dies
- Commonly used for estate planning — pays estate taxes after both spouses die
- Lower premiums than first-to-die policies
- Death benefit: typically used to pay estate taxes or fund a trust
- An independent agent can help you evaluate second-to-die policies for estate planning