Second to Die Life Insurance
Death and taxes are said to be the “only sure things in this world.” All life insurance products are designed to deal with the financial problems arising from death. One product, second to die life insurance, is specifically designed to solve tax problems as well.
Second to die life insurance insures two people, usually spouses, under one policy and can only be collected after the second insured passes away. This is typically when estate settlement issues arise. Second to die life insurance can be an important part of your estate planning, leaving your heirs enough money to help pay off their estate taxes.
There are many options for second to die life insurance and many underwriters offer special conditions which may be to your advantage depending on your coverage requirements and financial condition. Some examples include:
- By removing the death benefit from your estate by gifting or placing ownership in a trust or other third party ownership, you can preserve your net worth for your heirs or beneficiaries.
- An alternative form of survivorship insurance, joint life insurance or first to die life insurance can insure two people with the death benefit paid to the survivor on the passing of the first insured. Like second to die insurance, the cost to insure two people is usually less expensive than two separate policies.
- Second to die insurance can include a “spendthrift” clause that requires the death benefit to be paid out over time in installments rather than as a lump sum payment.
- The use of a spendthrift clause can be written so that the beneficiary cannot change the settlement option, or borrow against or assign the proceeds. This can help prevent creditors of the beneficiary from taking the death benefit to pay debts.
- With the help of a second to die insurance expert at Keystone Insurers Group, your policy can be customized to meet your specific needs.
These are just a few of the many options. A second to die life insurance expert at Keystone Insurers Group will help you determine if survivorship is your best life insurance option, and which insurer can offer you the best rates and the best options that meet your needs.
Call us today for a free second to die insurance policy quote.