Joint Life Second Death

Joint Life Second Death, also known as Second-to-Die Life Insurance, refers to a type of life insurance policy that is designed to cover two individuals, usually spouses, under a single policy. In the context of an Indexed Universal Life (IUL) policy, this would mean that the death benefit is not paid out upon the first policyholder's death but instead is deferred until the second policyholder passes away. This type of policy is often used in estate planning, where the focus is on providing liquidity for estate taxes and other expenses after both individuals have passed away. The premiums for a Joint Life Second Death IUL policy are generally lower than purchasing two separate IUL policies, as the risk is spread across two lives and the payout is deferred until the second death.