Survivorship Life

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. Survivorship life insurance, also known as a second-to-die policy, is permanent insurance that covers the lives of two people and pays the death benefit only after the death of the second person.

Survivorship life may be appropriate for married couples with substantial wealth if estate taxes might be due after the death of the second person.

The death benefit would be available to cover the amount due at the federal or state level, protecting some of or all the assets from having to be sold to cover these tax bills.

However, the premiums on survivorship life policies are often higher than the cost of other types of permanent insurance.