How survivorship life insurance works?
Survivorship life plan is a type of life insurance policy that provides coverage for two people, a group, a spouse, or friends. It pays out a death benefit when the second person dies.
This type of policy works to provide financial security for the surviving spouse after the death of the other. The policy can also cover estate taxes or other expenses associated with the first spouse’s death.
The policy is typically more expensive than individual life insurance policies, but it can provide peace of mind for those left behind as heirs of the deceased. It features several advantages for the applicants:
01 Death Benefit
The death benefit of a policy serves the surviving beneficiary upon the second insured’s death.
02 Flexible Premiums
These rates typically have flexible premiums, allowing policyholders to adjust their payments as their financial situation changes.
03 Tax Benefits
Survivorship life insurance rates are often tax-free, meaning that the death benefit is not subject to income tax.
04 Estate Planning
Survivorship life insurance policies can help with estate planning, as the death benefit also pays off debts or taxes or to provide an inheritance for heirs.
05 Investment Options
Survivorship life insurance rates often offer investment options, allowing policyholders to invest their premiums in stocks, bonds, mutual funds, and other investments.
06 Living Benefits
Some survivorship life insurance policies offer living benefits, such as long-term care coverage or accelerated death benefits.