Survivorship Life Insurance
Survivorship life insurance covers two people, often spouses, and typically pays the death benefit after the second person passes away.
How this coverage works
One policy insures two lives. Nothing is paid when the first person dies. The benefit is paid after the second death, which is why it is sometimes called second-to-die coverage.
Because the carrier is insuring a later event, the premium for a given benefit is generally lower than two individual policies. It is most often used where the money is needed by an estate rather than by a surviving spouse.
Who this coverage may be good for
- Couples planning an estate.
- Legacy giving.
- Estates that may need liquidity for taxes, property, or debts.
What to consider before choosing it
- It does not usually pay anything after the first death.
- A surviving spouse who needs income will not get it from this policy.
- Estate structures change. Coordinate with legal and tax professionals.
Common questions
Why would we want nothing paid at the first death?
Because in some plans the money is not needed then. If the surviving spouse is provided for, and the goal is what passes to the next generation, insuring the second death costs less for the same benefit.
What if one of us is uninsurable?
Survivorship underwriting may accommodate a health situation that would make an individual policy difficult, though this varies by carrier and is never assured.
What if we divorce?
The policy still insures both lives. Options for splitting or restructuring depend on the contract, and this is worth asking about before buying rather than after.
Coverage availability, benefits, riders, and underwriting requirements vary by carrier, product, state, and individual eligibility. This page is for general educational purposes and is not a guarantee of coverage.