Second-to-die life insurance, also called survivorship life, is most closely associated with the payment of federal estate taxes.
With a "
second-to-die," "survivorship," or "joint and survivor" policy, proceeds are payable at the death of the last survivor.
Second-to-die policies are permanent, not a term policy, and are typically cheaper than other types of policies, she said.
entered into a split-dollar plan (a way to pay for life insurance) for a $3 million
second-to-die life insurance policy (on the lives of Joe and his wife) to be owned by an irrevocable life insurance trust (ILIT).
The unlimited marital deduction and
second-to-die (or survivorship) life insurance were made for each other.
58 costs, but later ruled that the insurer's lowest yearly renewable standard term rates could be used.(4) The IRS later ruled that when an SDLI plan involves a
second-to-die life insurance policy the cost of one-year term insurance may be based on the rates in joint-life Table 38, U.S.
This has led to the growth in popularity of the so-called
second-to-die life insurance policy.
Also, the IRA Conversion Plan provides a program to increase the after-tax size of an inheritance by using distributions for the purchase of life insurance inside an irrevocable trust; a Spousal Lifetime Support provides for needs of a surviving spouse through
second-to-die insurance; a Flexible Irrevocable Trust covers estate-tax liquidity needs; and a Standby Trust addresses the uncertainties of the estate-tax phaseout by allowing an insured couple to put off placing a survivorship policy into an irrevocable life insurance trust until after the first spouse's death.
Second-to-die life insurance pays a benefit at the death of the second of two insureds (usually a spouse).
Hancock Launches New Version Of Variable
Second-to-Die Plan:
"For the first quarter, based on Limra statistics, we were the largest seller of
second-to-die life insurance," said Dennis Catanzano, vice president of product research and evaluation for Lincoln National.
moved ahead in February with plans to launch a flexible-premium survivorship variable universal life policy, the latest of several insurers in recent months to introduce
second-to-die products.