Second-to-die insurance

(redirected from Last Survivor Policy)

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.
Mentioned in ?
References in periodicals archive ?
Some insurers offer a rider, typically referred to as an exchange option that allows a last survivor policy to be exchanged for two individual policies in the event of divorce, reduction of the maximum federal estate tax bracket or repeal of the unlimited marital deduction.
However, splitting a last survivor policy may result in adverse income tax consequences.