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Survivorship life insurance is an important estate planning tool that can protect 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 can protect your net worth for the next generation.
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 Life or Universal Life Policy
• 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 universal life policies may decline over time.