There may come a time when you realize that many of your financial goals are accomplished. You have succeeded in building a comfortable nest egg and are now thinking about the future generations of your family. Whether you want to provide your children with a financial safety net, help your grandchildren through college, or help pay taxes that may be due on your estate, the future of your assets depends on a solid plan.
A plan that offers financial protection while helping you build, preserve, and distribute your wealth can be a very rewarding experience.
- Build – Accumulate and grow your assets with a reasonable rate of return.
- Preserve – Prepare for estate taxes and probate costs, and pay off debts that can eat away at wealth.
- Distribute – Ensure your estate will pass to those who will appreciate it and make the most of it.
One of the most efficient solutions that may help you achieve all three of these goals is life insurance. Survivorship GIUL is a survivorship index universal life policy that offers death benefit protection designed to help you meet your estate planning needs.
Survivorship (second to die) Life Insurance Policy Overview
What is survivorship (second to die) insurance?
It’s A Second-to-Die Policy that is Permanent life insurance on two lives under one policy and pays a death benefit when the second person dies. It offers lower premium payments than two separate policies, especially if one of the two has poor health.
Survivorship life insurance insures the lives of two people and doesn’t pay a death benefit until both insureds have died. It provides death benefit proceeds to those who need financial support after both insureds are gone. The beneficiaries are typically a child or children, an organization, or sometimes a trust. Depending on your financial situation, a survivorship life insurance policy may offer death benefit protection for your estate planning needs. For those with sizable estates, there may be significant federal estate taxes upon death.
The death benefit from a 2nd to die life insurance policy can be used to help pay any applicable taxes.
Why would anyone be interested in Second to Die Insurance?
If you’re interested in leaving your children and grandchildren the most money possible, for the least amount of money, survivorship life insurance is the best. These policies provide the most permanent life insurance coverage for your money because the life insurance company doesn’t have to pay the death benefit until the last person dies.
If you know estate taxes will need to be paid someday, then survivorship insurance is the best type of policy to buy in order to take care of said taxes. A last to die policy should also be a very important part of estate planning for most people. If you don’t have a large estate but still want to leave all you can to your children and grandchildren, a last to die life insurance policy is the most inexpensive way to do it.
Cost of Survivorship Vs. Individual Life Insurance
- A $1,000,000 Survivorship policy for a couple 65 years old is only $11,292 a year.
- A $1,000,000 policy for a 65 year old male is $19,017 a year.
Below are example survivorship life insurance quotes.
A Life Insurance Company’s financial strength is a valuable indicator of their dependability both today and in the future. The life insurance companies we write a Survivorship policies with are all over 100 years old, rated A+, rated Superior by AM Best, with a Comdex Ranking over 90.
The Comdex is not a rating in itself. It’s a composite of all the ratings a company has received from the four major rating agencies. It ranks insurers on a scale of 1 to 100 (where 1 is the lowest) in an effort to reduce confusion over ratings because each agency uses a different scale.
Advantages of Survivorship life insurance policies
It Costs Less
Survivorship life insurance is typically less expensive per thousand dollars of death benefits than a traditional single person life insurance policy. In the case of survivorship policies, the premium is based upon the joint life expectancy of the couples being insured. Since the insurance company doesn’t pay until both insureds die, the premium should be quite less than buying separate policies for both individuals Indirectly.
It’s easier to qualify for a Last to die life insurance policy than for a typical single insured life insurance policy. This is because both policyholders must die before the insurance company pays, the insurance company is less concerned that one of them might not be in good health. Companies are often willing to write survivorship insurance even if one of the customers might not be able to get life insurance by normal standards. Of course, each insurance company will decide on what a “uninsurable risk” is.
Builds your assets
In some cases, survivorship life insurance is marketed as a way to build an estate, not just insulate it from taxes. Like traditional life insurance, the death benefit of a survivorship life policy can ensure that your beneficiaries receive a minimum amount of money, even if you spend every dime during your lifetime.
Preserves your estate
A second to die policy appeals to individuals who feel strongly about preserving their assets for their children and or loved ones. Clients normally buy a survivorship policy so their estate stays intact when it is transferred to their heirs, the life insurance benefit is primarily used for paying the taxes.
Special Needs Child
If you have a child that requires special needs, concern parents greatest fears are what will happens to our child after both parents die? You may need to set up a second to die life insurance trust in order to care for him/her after both you and your spouse pass away. Parents can create a special trust that is funded by a survivorship life insurance policy on both parents. A lawyer or trustworthy family member can act as the administrator.
Leave a Legacy
If your objective is to leave the largest inheritance to your heirs for the least amount of money, there’s nothing better than Survivorship Life Insurance. This policy allows you to give more to the ones you care about because it only pays out when the last person dies, allowing you to get more life insurance for less cost. That way there is plenty of money left over after estate taxes are paid.
Call us today at 1-800-657-7178 to receive a no obligation quote.
Life Insurance typesFinal Expense Life Insurance
No Medical Exam Life Insurance
Universal Life Insurance
Whole Life Insurance
Term Life Insurance with Living Benefits
Indexed Universal Life Insurance
Guaranteed Life Insurance
Second To Die Life Insurance
Mortgage Life Insurance
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