Survivorship Life Insurance Coverage
Understanding the Benefits and Features of Survivorship Life Insurance Coverage
Survivorship life insurance coverage, also known as second-to-die life insurance, is a type of life insurance policy that insures two people under a single policy. Unlike traditional life insurance policies that pay out upon the death of the insured individual, survivorship life insurance pays out upon the death of the second insured person. This means that the beneficiaries will receive the insurance proceeds only after both individuals covered by the policy pass away. Survivorship life insurance is often used by couples or business partners who want to provide financial security for their loved ones or ensure the smooth transfer of assets. It can be an attractive option for couples with estate planning goals, as the death benefits can help cover estate taxes or provide an inheritance to their heirs. Additionally, survivorship life insurance can be beneficial for business partners who rely on each other’s expertise and want to protect their business interests. The premiums for survivorship life insurance policies tend to be lower compared to individual policies, making it a cost-effective option for those who need coverage for two individuals. It’s worth noting that survivorship life insurance does not typically build cash value, meaning it does not accumulate a savings component or offer potential investment returns. Overall, survivorship life insurance coverage can be a sensible approach for those looking to ensure financial protection, estate planning, or business continuity.
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