Best Life Quote

Second To Die Life Insurance

last will and testiment

Written By Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA.  Doug has spent close to 30 years in the insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health.  Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

Holly Mitchell  &

Holly Mitchell’s background in life insurance insurance goes back to 1985 when she worked for her father who was a New York Life agent. Holly has a marketing degree from Auburn University and has had a life insurance license since 2008. In addition to advising life insurance for customers all around the country, Holly is our website fact checker.

Rob Pinner   &

Rob Pinner is the founder and CEO of Pinner Financial Services servicing all 50 states. Rob started his insurance career in 2002.

Louis LaBash

Results-driven and innovative life insurance professional with 30 plus years of life insurance industry sales and marketing experience. Recognized as a pioneer in the field, leveraging phone and internet channels to exceed personal sales of over $100 million during the first decade of the 21st century. Creator of a highly effective intuitive IUL life insurance sales software that facilitated the sale of millions of dollars of indexed universal policies by numerous life insurance agents. Proven track record as a Managing General Agent (MGA), Life Agent, IUL Life Insurance Sales Software developer, and leading-edge creator of insurance marketing tools, educational content, and delivery systems.

Table of Contents

Life insurance comes with many different options, and you may have heard about second to die life insurance.

We’ll cover how this type of life insurance works and its primary uses in this article.

What Is Second to Die Life Insurance?

Also known as Survivorship Life Insurance or in some cases, Dual-Life Insurance, Second to Die is where your children (or other named heirs) receive benefits after both you and your spouse pass away. In other words, the heirs receive benefits after the second spouse (the surviving one) dies.

Because life insurance is such an important investment, it’s vital that you make the best purchase for your loved ones.

There are dozens of different types of coverage, and second to die coverage is just one of them.

Survivorship Life Insurance Pros

Obviously, the primary purpose of this type of insurance is to ensure that your children have a financially secure future. For example, this is a good way to set up an inheritance for them.

This kind of life insurance is even more helpful if you have any children with special needs, because they may need even greater financial assistance in the future, well into adulthood.

Now, there are a few additional reasons people may choose to go for Second to Die insurance:

Lower Costs

Believe it or not, Second to Die insurance policies are usually cheaper than individual insurance policies. This is especially true if you have an estate that is larger than most.

Premium rates are much lower than other kinds of policies because benefits are not paid out until both of the policyholders pass away.

In most cases, there are several options for affordable life insurance protection. If you’re looking for an affordable option for life insurance coverage, second to die can be one option, but just because it’s cheap doesn’t mean it’s the best choice.

Estate Protection

If your family has a lot of assets but perhaps not that much actual cash in the bank, this kind of policy can prevent your children from having to go into severe debt just to pay off estate taxes or having to sell off the assets they inherit.

The Taxpayer Relief Act of 1997 changed estate tax laws in order to provide some relief for those who are rich in assets but poor in cash, but a Second to Die life insurance policy offers even greater protection by providing the cash when estate taxes are due.

Lenient Underwriting

Since two people are insured with this policy rather than just one, insurance underwriting tends to adhere to a more lenient set of requirements. This is great because it means that even if you (or your spouse) are in poor health or normally uninsurable for other reasons, you will usually still be able to get a Second to Die policy.

If you’ve ever been rejected in the past because of your health, then applying for a second to die plan could give you the coverage that you need. Just because you’ve been declined, doesn’t mean that second to die is your only option.

Survivorship Life Insurance Cons

I don’t recommend second to die policies if you are looking to use life insurance for income protection for your family. If you are the main breadwinner and pass away, the policy won’t pay out until you and the other insured on the policy pass.

This is why for most people 2nd to die life insurance does not make sense, and a regular term life policy will be more suitable.

Second to Die policies can come as either permanent or term insurance. However, since people use them to guarantee there will be an inheritance when they pass, permanent life insurance in the form of universal or whole life is a more popular choice when buying second to die life insurance.

Which Type Of Life Insurance Is Right For You?

Second to die life insurance is only one kind of life insurance that you can choose from, and for a lot of applicants, they are the best choice. Luckily, there are several other kinds that you can choose from.

The most popular type of coverage is a term life insurance plan. These policies are bought with an expiration date attached to them. One significant advantage of these term plans is that you can buy them to match the length of your debts. You won’t have to pay for years of insurance that you don’t need, and because they are not permanent coverage, the premiums are going to be lower than other options for coverage.

Another option for applicants is a no medical exam life insurance plan. As you can guess from the name, the plans allow you to get life insurance without being required to take the exam first.

High-Risk Applicants

If you have any pre-existing conditions like diabetes or cardiovascular complications, then you’re a high-risk applicant, which means that the insurance companies may decline you for life insurance or will charge you much more for your protection.

If you’re a high-risk applicant, you’re probably going to pay more for your life insurance, but you don’t have to settle for expensive coverage. Your goal is to find a company with better plans for high-risk applicants.

When you’re looking for one of those companies, we can help. At Best Life Quotes, we have taken the time to outline some of the best companies for different groups of people.

Second-to-die life insurance is a unique type of life insurance which doesn’t work well for everyone. In fact, it’s something we will rarely recommend. Hopefully, this article has given you all the information you need.

If you would like to learn more about this kind of life insurance and get a quote, please contact us at 800-712-8519.

Picture of Doug Mitchell, CLU

Doug Mitchell, CLU

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA. Doug has spent close to 30 years in the life insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health. Some other notable items about Doug: Top of the Table Million Dollar Round Table member (MDRT). (MDRT is a global, independent association of the world’s leading life insurance advisors) | Premier Partner with Lincoln Financial and Cabinet Member | Served two years as President of the Auburn/Opelika Association of Financial Advisors | Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award | New York Life, Executive Council Member | Currently serves as President of Ogletree Financial, a life insurance General Agency. | Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

Get your Quote