SURVIVORSHIP INSURANCE

Survivorship insurance, often referred to as second-to-die policies, is a type of life insurance that pays out after both policy owners have died. This ensures that their living children or other beneficiaries are taken care of once they are gone. Policy owners are typically wealthy, and these policies are not recommended for couples in which the surviving spouse needs to collect an insurance benefit to cover expenses. Survivorship insurance minimizes estate taxes, which are due after both spouses have passed.

Parents with a special needs child are also good candidates for survivorship insurance, because the policy can help fund the third-party care for the child. People also choose survivorship insurance to leave a legacy by creating an ongoing donation to an organization they care about. Survivorship insurance also helps with business transition by providing funds to family members who are not interested in continuing a family business.