September 14, 2007, Newsletter Issue #69: Tips for Choosing Survivorship Life Insurance

Tip of the Week

Survivorship life insurance is an important estate planning tool that protects your assets from taxes while preserving them for your loved ones. Use the following tips to decide if survivorship life insurance, also called second to die insurance, is right for your family.

Tip 1. Survivorship Life Insurance Is Very Affordable

Second to die policies are single policies that provide protection for both spouses at generally cheaper rates than available with two separate policies.

Tip 2. You Need Not Be Wealthy To Benefit from Survivorship Life Insurance


Regardless of how much money you have, chances are you would prefer to have your loved ones enjoy your earnings instead of losing them to taxes. Second to die insurance protects the bulk of your net worth.

Tip 3. Survivorship Life Insurance Delays Payment of Estate Taxes


These policies are also called second to die policies because benefits and estate taxes are not paid until the second insured dies.

Tip 4. Survivorship Life Insurance is Available as a Whole or Universal Life Policy


Both of these are types of permanent life insurance


Whole life policies provide protection for the rest of your life, as long as premium payments remain current. Whole life provides the security of guaranteed premiums and payouts.Universal life policies are evolving to include lifetime guarantees; however that guarantee does not extend to the policy’s cash value.The cash value of these policies may decline over time.

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