Second-to-die insurance

Second-to-die insurance

Insurance policy that, on the death of the spouse dying last, pays a death benefit to the heirs that is designed to cover estate taxes.

Second-to-Die Insurance

An insurance policy that covers a married couple and pays the death benefit on the death of the second spouse. Generally speaking, the death benefit is intended to cover the estate tax. Because the second spouse does not owe the estate tax upon the death of the first spouse, second to die insurance helps the heirs of the married couple rather than either the husband or the wife. It is also called survivorship life insurance or dual-life insurance.
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Survivorship Life: Also called second-to-die insurance, survivorship life insurance covers the lives of two people and pays benefits only after both people have died.
New York, says this private split-dollar technique is most tax-efficient when funded with a second-to-die insurance policy.
My wealthiest client, who cannot seem to make what he considers big financial decisions without the "OK" from his banker, tells me, after I have presented him with a second-to-die insurance strategy, that he thinks the idea is a great one but is concerned that in hyper-inflationary times, this would become a bad investment.
Survivorship life insurance, also known as last-to-die insurance or second-to-die insurance, insures two lives, and pays a death benefit after the death of both insureds.
New Developments Affect Second-To-Die Insurance Policy Products and Planning," Howard Saks, Estate Planning, November/December 1990, pp.
A profit-sharing plan (PSP) could purchase second-to-die insurance.
In Letter Ruling 9745019, this rationale was extended to a properly structured second-to-die insurance policy.
More recently, PLR 9745019 concludes that a collateral assignment, split-dollar agreement between a husband, wife, and an irrevocable trust will not result in the inclusion of the proceeds of a second-to-die insurance policy in the estate of the last to die of the insureds.
Premium payments for the second-to-die insurance should come from income generated by the family partnership.
The Supplemental Retirement Legacy places emphasis on use of second-to-die insurance used in an irrevocable trust to help build cash value or use death benefit proceeds for supplemental retirement income.
For example, second-to-die insurance is basically a permanent product.
Married couples often buy second-to-die insurance for the trust, McDonald said.