Should you buy a second to die life insurance policy?
With a regular term life, whole or universal life insurance policy, a person’s beneficiaries will be paid a death benefit after they’ve passed away. While these policies only insure one person, there is second to die life insurance which actually insures two people at once. This life insurance policy works differently than a regular policy and is often purchased for different purposes. Below is a brief outline of what can be expected with second to die life insurance:
As mentioned previously, second to die life insurance covers two people. In most instances, it is a couple who will purchase second to die life insurance but the benefits from the policy are only paid after the second person in the couple dies. So, for instance, if one spouse passes away but the other is still living, no benefits will be paid until the second individual on the life insurance policy dies.
A Second to Die Life Insurance Trust could be the answer:
Why might someone choose this form of life insurance? There are many different reasons people choose the policies that they do, but a few of the most common reasons for selecting second to die life insurance are for giving to charities, planning an estate and ensuring there is money to provide for a child who has special needs. A second to die life insurance trust is another reason this type of policy can be set up.
So, for instance, the type of situation where a couple may choose this type of policy to assist with estate planning is if they had a rather large estate and knew that their heirs would be required to pay sizeable estate taxes. Or, if a child with a disability or other handicap will need care after both parents have passed away, this type of life insurance policy will guarantee that funds are available after they’re gone.
A Second to die life policy is not for everyone:
This type of life insurance policy certainly won’t be the best fit for everyone, but there are those whose unique circumstances or wishes make it a good insurance policy choice. For more information on second to die life insurance, talk to one of our licensed insurance agents.
When you get a second to die life insurance quote remember:
Just like getting any life insurance quote, first, you want to get help from an agent or agency who can shop multiple life companies at once. Which we can do. A second to die life insurance quote can be emailed to you by calling us. Getting second to die life insurance quotes can NOT be done without the help of an agent. Also, it might be cheaper to have 2 separate individual life policies than a second to die policy based on age and health class of the applicants.
Finding second to die life insurance rates is a little more complex than finding rates on a traditional policy. You will need the help of someone who knows what they are doing. Which we do. We can help you find rates for a second to die policy and compare them with 2 individual policies. Then we determine which is the most affordable option for you. Give us a call and we can help.
