Some clients purchase survivorship life
insurance that pays only on the death of the second spouse to die.
Be sure to share with the client that the guarantees of survivorship life
products are backed by the claims-paying ability of the issuing insurance company, and are subject to the policy's terms and conditions.
With regard to guaranteed universal life and survivorship life
, we hear, "Your premium and death benefits are guaranteed as long as you pay the premium.
Lincoln Financial Group (LNC) recently declared about its expansion suite of Survivorship life
insurance solutions with Lincoln WealthPreserve, Survivorship Indexed Universal Life (SIUL), Lincoln s first SIUL offering.
Second-to-die life insurance, also called survivorship life
, is most closely associated with the payment of federal estate taxes.
In cases involving a survivorship life
insurance policy where one insured has died, that policy can be exchanged for a new one that applies only to the life of the surviving insured.
In response to consumers' needs for greater protection during uncertain markets, expect to see continued interest in products offering guarantees, including universal life, survivorship life
, variable universal life and variable annuities.
The retention limit for individual life insurance products will be increased to as much as $30 million and the limit for survivorship life
insurance products will be increased to as much as $35 million.
insurance is often used when all estate taxes are deferred until the deaths of both husband and wife.
In its pure form, survivorship life
(SL), which is also called second-to-die or last-to-die life insurance, is a life insurance policy or, often, a combination of policies and riders that pays a death benefit only when the last of two or more named insureds dies.
Whether clients purchase single-life or survivorship life
insurance policies, to the extent that an irrevocable mast is the policy owner and beneficiary, the proceeds will pass estate tax free to their trust beneficiaries.
Although problems can arise if the assets do not appreciate enough to cover the estate tax liability, a portion of the trust or partnership asset can be invested in single life or survivorship life
insurance excluded from the taxable estate.