Survivorship Life Insurance
An Estate Planning Solution and Estate Planning Tool
Survivorship Life Insurance, also known as Joint and Survivor
Insurance or second to die life insurance, are insurance policies that insure
the lives of two people, typically a husband and a wife.
The death benefit is not paid to the beneficiary until the death
of the second insured. These survivorship life insurance policies are generally
available as either whole or universal life policies, and second to die life
insurance often provides more affordable life insurance than two separate policies.
The reason a survivorship life insurance policy doesn't pay until the second
person dies is that it is designed to pay or assist paying for estate taxes.
Estate taxes can be delayed until both spouses die thus the design of these
special insurance policies.
Joint Survivorship life insurance policies are effective tools
often used by wealthy individuals in estate planning. By removing the proceeds
of a life insurance policy through the use of gifting and placing policies in
third party ownership such as a trust or in the name of children, a joint and
survivor policy can be used to pay for estate taxes. Careful planning by your
tax and legal counsel, coupled with a properly structured second to die life insurance
policy, can help you preserve your net worth for your heirs.
Insurance for Special Needs Children
We have had a fair number of couples requesting survivorship life insurance
to make sure funds are available for a child with special needs for their care
and financial security after the death of both parents. It is also important if
you use this planning methodology to get individual life insurance to insure each
parent’s income as well. The parents should also look into individual disability
insurance (see www.protectyourincome.com ). We have worked with other parents
to help in this planning. Feel free to contact us to discuss options.
Insurance Quotes on Second to Die Policies
If you want the most competitive insurance quotes on second to
die policies, Life Insure.com has access to the leading and most competitive joint
and survivorship life policies available. Call us so we can prepare the most competitive
quotes available or click here to email
us information.
The Strategy
Survivorship insurance can be a "discounted dollars" strategy. What that
means is that one can use this policy to pay pennies on the dollar now in order to have
100 cent dollars when they’re needed to help pay estate taxes. This is a good analogy
for any permanent life policy. For example, if you deposited $10,000 per
year in a survivorship life insurance policy for $1,000,000 of insurance you are in
effect paying 1% a year for 100% later. If the premium is guaranteed and you and your
spouse live for 30 years, you would have paid in 30 cents for every dollar. What makes
this even more interesting as a strategy is that if you set it up with third party ownership
in an insurance trust (or with children as owners) the $1,000,000 could be set up to be
both income tax free and not subject to estate taxes. Your attorney can assist you with the
trust and ownership part of the strategy. Our job (and expertise) is to find you the most
cost-effective policy.
Click
here for a Joint/Survivorship Quote
To learn more, click one of the following:
Term Life Policies
Return of premium
Whole Life Policies
Universal Life Policies
Survivorship Life (Joint and Survivor)
To get a quote for life insurance, click one of the following:
Term life Quote
Return of premium Quote
Whole life Quote
Universal life Quote
Survivorship life Quote (Joint and Survivor)
