Survivorship Life Insurance

What is Survivorship Life Insurance?

Survivorship Life Insurance, also known as second-to-die life insurance, covers two individuals and pays out a benefit only after both insured persons have passed away. It's designed to provide financial protection for couples, typically offering one premium payment for both lives insured. Unlike traditional life insurance policies, Survivorship Life Insurance doesn't pay a death benefit upon the first death but provides liquidity upon the second death, making it suitable for scenarios like second marriages or estate planning with a significant age gap between spouses.

Why Survivorship Life Insurance?

Survivorship Life Insurance offers tax-deferred cash value growth, allowing policyholders to build assets while deferring federal taxes. With flexible premiums, it adapts to changing financial needs, providing affordability and versatility. Additionally, the tax-free death benefit ensures that beneficiaries receive the policy's proceeds without incurring income tax, securing their financial future.

Some Benefits of Survivorship Life Insurance

• Build tax-deferred cash value: There is a growth in the cash value of the policy, which is deferred from federal taxes and can also be accessed for a variety of personal needs.
• Flexible premiums: Premiums can be raised or lowered depending on your financial needs/situation at any given time.
• Affordable: Usually less expensive than two whole life or universal life policies.
• Tax-free death benefit: Your death benefit, regardless of how small or large it may be, is passed on to your beneficiaries generally free of income tax.

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