Second-To-Die Insurance

Second-to-die insurance, also known as survivorship life insurance, is a type of life insurance policy that insures the lives of two people, typically a married couple, and pays out the death benefit only after the second person has passed away.

This kind of policy is particularly useful for estate planning purposes, as it can help to cover estate taxes and provide for heirs. Since the death benefit is not paid until the second insured individual's death, the premiums for second-to-die insurance are generally lower than those for two separate life insurance policies.

One of the main advantages of second-to-die insurance is its ability to provide a significant liquidity boost to the insured's estate at a crucial time. The proceeds from the policy can be used to pay estate taxes, settle debts, or provide for any surviving dependents.