5 Advantages of Second-to-Die Life Insurance

There are a variety of advantages to using Survivorship Life (SL), which is also called second-to-die or last-to-die life insurance. This article will explain 5 of those advantages, and how they can be utilized to make the best possible decision.

  1. If used in conjunction with the unlimited marital deduction, proceeds are payable when needed—at the second death.
  2. Premiums are lower than for equivalent coverage in two separate policies.
  3. A number of alternative term/permanent life combinations and newer indexed, variable, and guaranteed no-lapse UL products are available that provide wide latitude and flexibility in premium payment and death benefit arrangements.
  4. A lower taxable “economic benefit” is reportable in split-dollar plans.
  5. Medical underwriting standards are often eased (at least for one of the two insureds) due to the fact that death benefits are not paid until the last death.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

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