When I'm asked about term versus permanent life insurance, I often answer with the question, " Is the insurance for when you die or if you die? " While we're all going to die at some point, a need to insure that risk may not exist. In other words, if the insurance is for when you die, a permanent product make sense. If the insurance is for if you die (before some event occurs), then a term product can be a good fit. Second to die life insurance, most likely, is in the when you die category. For example, when I die, there needs to be funds to support a special needs child. Or when I die, I want to leave a bequest for my children. But, a permanent life insurance product can be expensive. One...
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What Is Last-Survivor Life Insurance? Last-survivor or second-to-die life insurance covers two lives under one policy. The death benefit is paid after the second person covered under the policy dies. Generally, premiums continue to be paid after the first insured dies. However, this type of policy may feature less expensive premiums than two individual policies, allowing the policy owner(s) the potential to buy a policy with a larger death benefit than might otherwise be affordable using separate policies. Last-survivor life insurance may serve several purposes. For instance, last-survivor life insurance can be used to increase the inheritance for the beneficiaries of a married couple with...
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The Ins and Outs of First-to-Die Life Insurance Couples who want to purchase life insurance that has a manageable premium often opt for a joint plan, and one budget-friendly option for joint coverage is first-to-die life insurance. Although these plans only provide a single death benefit, which is payable upon the death of the first covered partner, they may suit the unique needs of some families. This article provides an overview of first-to-die life insurance plans and explores the pros and cons of this type of policy. What Is First-to-Die Joint Life Insurance? First-to-die life insurance is a single-contract policy that covers two lives, paying a death benefit when the first covered...
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Life insurance is a popular option for people who want to ensure the financial security of loved ones after they're gone. Second-to-die life insurance is no different, and can be especially helpful for spouses with large estates or without the need for cashflow after their spouse dies. While it's most commonly used by married couples, there are other situations where second-to-die life insurance is a good option as well. Second-to-die life insurance, also called dual-life insurance or survivorship insurance, is a type of life insurance on two people that provides benefits only after the last surviving person on the policy dies. In most cases, a married couple will use second-to-die...
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Types of Life Insurance Policies You know that you need life insurance. However, with the wide variety of insurance policies available, you may find choosing the right one difficult. It's really not as confusing as it seems, however, once you understand the basic types of life insurance policies. Term life insurance With a term policy, you get "pure" life insurance coverage. Term insurance provides a death benefit for only a specific period of time. If you die during the coverage period, your beneficiary (the person you named to collect the insurance proceeds) receives the death benefit (the face amount of the policy). If you live past the term period, your coverage ends, and you get...
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Survivorship life insurance offers greater death benefits at lower costs than typical life insurance because the benefits are not paid until two or more policyholders have died. Because survivorship life insurance lists someone other than the decedent’s estate as a beneficiary, this type of insurance does not need to be distributed by a court through a probate process. Survivorship life insurance may not be right for those who will need the death benefits in the immediate term in order to pay off expenses after the death of their spouse Is survivorship life insurance more advantageous for estate planning than a typical life insurance policy? The answer, in part, depends on the needs of one...
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About 60 percent of Americans hold some form of life insurance. Later in life, weighing different life insurance policies is an important consideration for married couples. As you undergo your estate planning process, it’s vital to consider a life insurance policy that will suit your unique circumstances. How Does Life Insurance Work? Life insurance ensures payment to beneficiaries should the insured individual pass away. Married couples have the option to either choose a separate insurance policy, which covers each spouse individually, or a joint insurance policy, which insures both parties. Of the joint insurance policies, there are two types: first-to-die insurance and survivorship life...
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Last-Survivor Life Insurance Last-survivor or second-to-die life insurance covers two lives under one policy. The death benefit is paid after the second person covered under the policy dies. Generally, premiums continue to be paid after the first insured dies. However, this type of policy may feature less expensive premiums than two individual policies, allowing the policy owner(s) the potential to buy a policy with a larger death benefit than might otherwise be affordable using separate policies. Last-survivor life insurance may serve several purposes. For instance, last-survivor life insurance can be used to increase the inheritance for the beneficiaries of a married couple with an...
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There is a lot to consider when it comes to estate planning and how to integrate life insurance. Without life insurance and an estate plan in place, your heirs are likely to experience many inconveniences ranging from court room battles among family members, arguments over custodial arrangements of minor children, and feuds between family regarding the distribution of your assets and more. We normally think of an estate plan as a set of instructions that will go into place once we pass. However, having a sound estate plan in place can also offer tremendous assistance should you become incapacitated. In this situation, it is vital to have someone who can make decisions for you as well as...
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Second to die insurance: A valuable tool for high net worth individuals Executives, business owners and other high net worth individuals are actively looking for ways to preserve their estates, not only for their family members, but also for charitable organizations. Based on his personal experience, Samuel R. Lee, an attorney at John Hancock Life Insurance Company and a licensed insurance counselor based in Dallas, says there are currently a large number of applications for survivorship life insurance in the business market alone, and brokers should take advantage of this opportunity. Survivorship life insurance, or "second to die" insurance, is a policy that insures the lives of two...
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