Second-To-Die Insurance, also known as survivorship insurance, is a type of life insurance policy that pays out a death benefit after both insured individuals have passed away. This policy is often used by couples, especially in estate planning, as it can help cover estate taxes or provide for heirs after both partners are gone. Understanding Second-To-Die Insurance is essential for couples looking to ensure financial stability for their loved ones after their deaths.
This type of insurance can be more affordable than two individual life insurance policies, as the death benefit is paid only after the second insured dies. It’s a strategic way to plan for the future and can be an effective tool for wealth transfer.