One of the most crucial things that people can do in life is to establish and take proper care of their families. While you are alive you work as hard as you can and make sacrifices along the way to provide everything your loved ones need.
Unfortunately, passing away means that you can no longer give your family emotional support but the good news is that you can get the chance to take care of their financial needs with life insurance. Depending on the vastness of your estate or need for insurance, second to die insurance may offer the best coverage for your situation.
What Survivorship Insurance Does for Families
- Buying a second to die life insurance policy is among the best ways for wealthy married couples to give their families financial protection. This type of policy is different from a regular life insurance policy because it insures two people who are usually a couple. Such policies only pay out when a surviving spouse dies.
- Second to die policies are suitable for couples that own a substantial amount of assets such as property but not a lot of liquid cash stored away in the bank.
- Second to die insurance is designed to enable your estate to flourish tax-free for as long as possible and provide cash flow when you need to protect your estate from taxes.
- Unlimited marital deduction makes it possible for married couples to leave their assets to each other on a tax-free basis.
Second to Die Insurance Considerations
A second to die policy is paid off when both spouses pass away, hence the term ‘second to die’, which refers to the second insured person passing away. The policies are not aimed at providing you with money while you are still alive; they are designed for people to purchase them and leave money behind when they are gone. No one wants a situation where their heirs are forced to sell assets that have sentimental value while they are still mourning the loss of a loved one.
Affordable and Easy to Qualify
- Second to die policies are affordable and lenient with underwriting even in cases where you or your partner has a health issue. The mortality and health risk is divided in these types of policies because the insurance provider actually focuses on insuring the healthier applicant or the person whole lifetime expectancy is longer.
- It is easier to get a second life insurance policy approved than a traditional one with flexible underwriting guidelines. This policy gives people who are considered uninsurable the opportunity to purchase life insurance.
- Survivorship policies are also highly sought after by people who seek to insure their special needs children’s future. Second insurance policies can help to balance out estates among heirs or children.
Second to die or survivorship insurance policies provide the money that is required to pay off estate taxes that heirs may have to contend with after the spouses pass away. The cash that is readily available from the insurance policy will enable you to pass on your real estate, investments and businesses without your heirs being forced to have a quick sale.