888-234-8376

tl2g_logo_

≡ Menu

Customer Reviews

INSTANT QUOTE

Survivorship Life Insurance [3 Amazing Benefits]

first and second to die life insurance

At TermLife2Go, we work with dozens of the best rated life insurance companies and no medical exam life insurance companies. To find out who would be the right fit for your your survivorship life insurance policy, please give us a call today for a free consultation.

Second to Die Life Insurance

Whenever you get a life insurance policy, two of the most important things to consider are:

  • Who do you need the policy to benefit?
  • How do you need the policy to benefit these people?

For some people, it’s important to have a policy that provides ongoing support for children who are still dependents. But what if your children are full-grown or you don’t have any children? Then, the dynamics of your life insurance policy are completely different. However, even if you don’t have children there very well may be someone you want to benefit from your life insurance policy, i.e. other family members, charities, pets, etc.…

First to Die Life Insurance

Please note: Unfortunately, we do not offer first to die coverage. To the best of our knowledge, this product is no longer offered by any carriers.

If you do not have kids and the person you want to cover is a business partner or a spouse, then a first to die life insurance policy might be what you need.

The way it works: The first to die policy is a joint life insurance policy that covers two people at the same time. Just like the name suggests, a pay out is given to the survivor of the first to die. The policy ends at the death of the first to die.

Who it’s good for: A first to die policy is good for people who are using life insurance as a way to supplement one’s income. Suppose you are a two-income couple, and the death of one will leave things financially tight for the surviving person. A first to die policy will help alleviate this worry by providing a supplementary income for the survivor.

Another great use is for business succession planning in the form of key man life insurance. For example, suppose you are in business with a spouse, a first to die life insurance policy can be a great way to provide an immediate income stream to the surviving spouse in order for the survivor to either wrap up the business, sell the business, or provide additional funds to hire a replacement.

Why get it: Lower cost—this joint policy is usually more affordable than getting two separate policies.

Drawbacks: In some cases, particularly when there are young children involved, only having coverage on one parent may not be ideal in the event that both parents should pass.

Survivorship Life Insurance Benefits

A survivorship life insurance policy, also known as second to die life insurance, is a joint permanent life insurance policy that covers two persons. Unlike the first to die policy, the second to die policy offers a pay out after both parties are deceased.

Guaranteed universal life insurance is the typical choice for this type of coverage.

Indexed Universal Life Insurance can provide a good option for those considering second to die policies.

You may also want to consider single premium universal life insurance.

Who it’s good for: If you and your partner/spouse’s main priority is to provide for your children, and supplementary income for the surviving spouse is not required, then you might want to consider survivorship life insurance.

For your kids

You may also want to speak with your children and see if it makes sense for them to help you pay for your second to die life insurance policy. After all, if your kids will be the beneficiaries of the policy, then it makes sense for them to take a vested interest in making sure the policy remains in force. Further, the leverage provided by life insurance will create a great return on investment for your children on the money they helped contribute towards the policy.

Business Succession

A survivorship life insurance policy can also be used for business succession. However, in contrast with a first to die policy, a second to die policy can be used to postpone a buy sell agreement funded with life insurance. For example, if a husband and wife are business partners owning a one half interest, the couple may purchase survivorship life insurance so that the policy pays out on the death of the surviving spouse.

Why get it: There are many great reasons to consider second to die life insurance, including:

  1. Funding a buy sell agreement where both spouses own a portion of a business.
  2. Paying estate taxes, possibly through an irrevocable life insurance trust.
  3. Leveraging your wealth through estate planning with life insurance for use in

a.) leaving an inheritance for your children, such as through a Family Trust; or

b.) leaving an inheritance for a charity

Drawbacks: This is not meant to provide income replacement to a surviving spouse because your surviving spouse will not benefit from the life insurance policy in his/her lifetime.

What is a “spendthrift clause”?

This is something that is optional in many second to die life insurance policies. A spendthrift clause allows you to set up a payment plan, releasing the policy’s pay out over time rather than all at once.

Why get it: This is an excellent option if you do not feel the recipient of your life insurance policy pay out is financially responsible to receive a large sum of money all at once. Essentially, the beneficiary has no ability to change the settlement option and cannot borrow from the funds or assign the proceeds to creditors or lenders.

Drawbacks: If your beneficiary dies before the total sum is paid out, the remaining money may be lost “in the system”. However, there are some legal measures that can be taken to prevent this.

Which life insurance companies offer a first to die policy?

Currently, the first to die policy isn’t available through any life insurance providers that we are aware of. In order to find out which life insurance policy offers the best second to die policy for you, it’s best to speak with an expert in the insurance industry. Better yet, speak with one who doesn’t have a vested interest in selling you a policy from any particular life insurance company. That’s us—TermLife2Go.

About TermLife2Go

We at TermLife2Go are life insurance experts with years of experience finding people like you the right policy. If you are looking for a first or second to die policy, but don’t know where to turn, we can help! Getting a life insurance policy is about much more than simply deciding on the type of policy (though that in itself is a huge deal!)

Other things you need to consider are you and your partner’s:

  • Health
  • Lifestyle Choices
  • Ages
  • Genetics
  • Careers
  • Budget

All of these things will factor in when deciding on the best life insurance provider and policy for you and your spouse. A joint life insurance policy that’s right for your neighbors may not be the joint life insurance policy that’s right for you and your spouse or partner.

TermLife2Go will take the time to understand the unique dynamics associated with your exact case. Only when we thoroughly understand your needs, criterion, and situation will we provide a shortlist policies and providers for you. We don’t make blanket recommendations—we customize each and every recommendation to ensure that the policies and companies are most suitable for you to help you find the most affordable life insurance.

So, what are you waiting for?  Give us a call today or visit our Life Insurance Quotes page and see what we can do for you!

Thank you for reading our article, Survivorship Life Insurance: First and Second to Die. Please leave any questions or comments below.

10 comments… add one
  • Looking for life insurance for my mother who is 89 years old . I can’t seem to find any out there.

    • Omosede,

      That is a tough one since the companies that we work with will generally only take on new clients who are 85 or younger.

      Sorry we couldn’t be more helpful,

      TermLife2Go.

  • How long is the waiting period for pay out in the “gauranteed issue” polocy?
    What is the turn around time of paying the funeral home.

    • Wendy,

      The waiting period (AKA: Graded Death Benefit) can vary from carrier to carrier but in general, it will typically last between 2-3 years.

      Now as for the turn around time for paying a funeral home, this time will also vary according depending on each carrier, but in general, it should happen relatively quickly. Additionally, funeral homes, are well aware of this, and will typically be quite accommodating during this time period.

      If you have any additional questions regarding which final expense companies offer the shortest Graded Death Benefit, or which company will provide you the best pricing, feel free to give us a call at and we’ll be more that happy to help you out.

      Thanks,

      TermLife2Go.

  • no calls please/ who offers a 25k no exam policy for a 71 yr old that his kids can buy to cover expensed AD.

    • George,

      We’re not exactly sure what you mean by “cover expensed AD”.

      Additionally, just as a side note, you’d be amazed at how often we get calls or emails from people saying that their mother or father:

      • paid for a “life insurance” policy for years and years only to find out that it expired at age 80,
      • or the policy that they paid for didn’t cover “natural” causes of death,
      • or the policy that they purchased eventually became so expensive as they got older that they could no longer afford to pay for it.
      • etc…

      And now they feel cheated!

      This is why we do not participate in “short answers” of “fast quotes”.

      Now we’ll be the first to admit that buying a life insurance policy is easy, but if you want to make sure that you’re buying a life insurance policy that won’t have your family members complaining about it, 20-30 years from now, that will typically require a little bit more effort.

      For this reason, we would simply recommend that you give us a call when you have a moment and we’ll do our very best to meet your needs.

      Thanks,

      TermLife2Go.

  • We are looking to purchase a cabin in a rural setting in the amount of $80,000. I would like to cover myself. I am currently 70 years old. Thank you.
    Dare Oliver

    • Dare,

      It sounds like a small life insurance policy might be a good idea as you take on this new asset so, why don’t you give us a call when you have a chance and we’ll be happy to go over your options with you.

      Thanks,

      TermLife2Go

  • i would like to know about getting life insurance on my sister,who has cancer she isn,t in good condition right now and so far it won,t be getting any better according to her doctor,and if i can get insurance in the event that something happens,will i be able to cash it in for funeral expenses for her?

    • Cassondra,

      It sounds like the policies you’re sister will be able to qualify for are what are called “guaranteed issue” life insurance policies. These types of policies won’t require a medical exam or require your sister to answer any medical questions however they will also contain what is called a “graded death benefit”. Graded death benefits are clauses within the insurance policy in which there will be some type of waiting period once the policy begins before the policy will pay out in the event of a “natural” caused death.

      For more information on such policies feel free to give us a call and we’d be happy to go over all of your options with you.

      Thanks,

      TermLife2Go.

Leave a Comment

TermLife2Go Mission

To empower our customers through knowledge and expertise so our clients secure the best and most appropriate insurance coverage available providing peace of mind to our clients and their loved ones.

About TermLife2Go

Our licensed professionals have over two decades worth of experience and will help you choose the best life insurance company for the lowest price based on your specific needs and lifestyle. Find out more about us here.