Survivorship Life Insurance!

Survivor or Second to die life insurance is a type of policy that is currently used predominately in estate planning cases.  This type of policy pays a death benefit at the death of the second insured.  Typically a Universal or Permanent policies are used to fund these types of contracts but there are a couple of carriers that do have a second to die or last survivor term life policy.  Which is used mostly when people are unsure of the estate tax situation and would like to insure their lives but wait to see what happens with congress and setting new laws. For more information about term second to die policies and other term products please visit term life insurance companies and research the carriers that manufacture and sell these plans. 

These types of policies are so popular for a couple of reasons the first mentioned in the prior paragraph and second is that the premiums are amortized between the two insured so the premiums or rates are lower than if you were too purchase two separate policies.  This policy is used frequently in high end estate planning programs as well like planned giving to a irrevocable life insurance trust, dynasty planning for future generations and other gifting and planning techniques.  When set up in a trust the beneficiaries are typically family members or a charitable bequest from the insured. 

How affordable is Survivorship Life Insurance or Second to Die Life?

Over the past few years the insurance carriers have come up with a new type of survivorship life policy with secondary guarantees or a guaranteed death benefit that will not lapse.  They call these policies no lapse guarantee second to die contracts.  This policy will typically have even cheaper or more affordable premiums vs. the older cash value type of plans.  The easiest way to describe this type of plan is to say that it is like term life for your life.  These have become the policy of choice with planners due to the low premium rates. 

Survivorship life insurance policies are a terrific tool to use and we have done a number of cases in b-trust or credit shelter trust maximization. Or simple and straight forward estate planning with ILIT trust and the parents doing a lifetime giving program.  Please remember another great benefit of trust planning is that it avoids probate so your nosy neighbors wont be butting into your business after you die. 

To get a free quote for one of these powerful planning insurance tools please just email or call us here at the lifeinsurance-pros so we can help you out.