Second-to-die insurance

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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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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.
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.