For couples that want to leave a legacy, survivorship life insurance can help make sure there’s money available for your loved ones after you’re gone.
Survivorship, also known as “second-to-die” insurance, is a type of joint life insurance policy that you can buy as a couple. With survivorship policies, your family receives a cash payout called a death benefit after both you and your partner have died. Couples often use survivorship policies to meet estate planning needs, pay credit cards or other debts, cover any taxes, or leave a legacy for children or other family members.
Survivorship plans are generally permanent life insurance policies, which can include whole life, variable life, and universal insurance options. That means they’ll cost more than term life insurance, but they’ll offer lifelong protection for you and your partner. Because survivorship plans are joint life policies, you also won’t have the hassle of buying and paying for two separate policies.
With survivorship life insurance, you and your spouse will apply to be covered together under a single plan. You pay monthly or annual premiums to keep the policy active, and your life insurance company will pay the policy’s death benefit after both you and your spouse have passed on.
Survivorship can be a good fit for couples looking to leave something behind for the next generation, whether that’s an inheritance for the kids or extra cash to cover unpaid debts, funeral costs, or other expenses. Since the policy doesn’t provide a cash payout until both partners have died, survivorship insurance isn’t the best choice for families with a single income earner. In those cases, individual life insurance policies for both partners may be a better fit. That way, no matter who dies first, the surviving spouse will receive a life insurance payout they can use to pay for any expenses while also staying covered with their own plan.
When buying survivorship insurance, you may also want to consider your options in case of divorce. Some insurance companies will let you split your survivorship plan into separate permanent policies or change your plan without extra underwriting. Talk to a life insurance professional about your options.
Survivorship insurance can provide lifelong peace of mind for you and your partner. With this plan, you can:
Instead of waiting for a will, your family can use your life insurance benefit to pay your funeral costs, cover credit card debts or estate taxes, or spend however else they like. Some couples also choose a favorite charity as a beneficiary.
While permanent life insurance is usually more expensive than term life, survivorship plans typically cost less than buying individual permanent policies for you and your spouse.
If one spouse has health issues and can’t get insured on their own, it can be easier to get survivorship coverage together. Joint plans often have an easier approval process than individual ones.
As permanent life insurance, survivorship plans will keep you and your partner covered for your entire lives. These plans also build cash value over time, which you can borrow from if you need to or use as collateral for a loan.
Survivorship insurance is a type of joint life insurance policy. In addition to survivorship, another joint life insurance option is “first-to-die” insurance. This type of policy covers both spouses and pays out a life insurance benefit when the first one dies. Joint life policies can be more cost-effective and convenient than two individual policies, but it’s important to talk to a life insurance agent to make sure your policy covers all your current and future financial needs.
If you depend on your spouse’s income, a “first-to-die” joint life policy can help you replace their earnings, manage any debts, and cover everyday expenses. This type of policy also covers both spouses, but pays a death benefit when the first spouse dies. At that point, the policy will end, so you’ll need to buy your own life insurance policy if you still need coverage.
For some couples, buying individual life insurance policies may be a better fit than buying a joint life policy together. Individual life insurance can help replace a spouse’s income, no matter who dies first, and keeps the surviving spouse covered with their own plan. Options for individuals include term life insurance, which covers you for a set period of time. Some couples also choose permanent life insurance, such as whole life or universal life, which provides lifelong protection. Talk to an agent about the best option for you.
A survivorship life insurance policy is best for couples that want to leave behind a legacy for the next generation. Survivorship life insurance is a flexible tool that can help heirs offset the tax burden of inheriting a large estate or provide assistance for a special needs child who requires ongoing financial support.
At eFinancial, we’re here to help you find survivorship and joint life coverage that fits your needs and budget. You’ll have access to term life, permanent life, and final expense options from over 20 life insurance companies. Our team of agents is here to guide you through the life insurance process, so you can get covered as quickly as possible. We’re committed to making the process simple, affordable, and convenient for you and your family.
To get started, request your free, no-obligation online quote or call 800-957-9525 to talk with one of our agents.
