Second-to-Die Life Insurance

Second-to-die life insurance, which is also called dual life or survivorship insurance, is primarily an estate planning tool that pays a death benefit only upon the death of the insured who survives the longest. Its main purpose is to pay estate taxes upon the death of the second insured. Because it is based on joint life expectancy, its premium is less than the total premiums for individual policies on the same lives. Second-to-die life insurance can take the form of a variety of traditional or interest-sensitive types of products. It may include premium flexibility to allow vanishing premiums or a minimum annual premium. Second-to-die life insurance has both personal and business applications.

Second-to-Die Life Insurance

Also called dual life or survivorship insurance, second-to-die life insurance is primarily an estate planning tool that pays a death benefit only upon the death of the insured who survives the longest. Its main purpose is to pay estate taxes upon the death of the second insured. Because it is based on joint life expectancy, its premium is less than the total premiums for individual policies on the same lives. Second-to-die life insurance can take the form of a variety of traditional or interest-sensitive types of products. It may include premium flexibility to allow vanishing premiums or a minimum annual premium. Second-to-die life insurance has both personal and business applications.