This is the kind of insurance which all the people have customized as per their needs. It is because the coverage has to be right and there are many choices that are available in survivorship insurance. Usually, the policies will be of the term or of the whole life. For the survivorship, there are policies that help personalize the cover as per the individual needs. This policy is also known as the second to die insurance. Choose Affordable Life USA offers Survivorship life quotes .
How is it done
In this policy, there are two people who are insured and both of them have to die in order for the benefit to be paid. If one of the insured people dies, the other has to continue to pay the premium as scheduled and he/she will not receive the benefit. After the death of the second insured, the benefit will be paid out to the mentioned beneficiaries. So this type of insurance is specially used for certain reasons only
- The tax bills are to be settled with the amount after both the insured are death so that no outstanding bills will bother the beneficiary.
- The needs of a child, when both the insured are dead, the necessitated care and funds for its well being are taken care by the benefits of this insurance.
- If the insured have a lifelong commitment of providing for charitable institutions and donating to them, this insurance will go towards that even the insured are long gone.
This one of the joint life insurances that sometimes two people take, they may be spouses, friends, siblings, colleagues or friends. It’s joint life insurance, in this both the policyholders have to die for the beneficiaries to get the claim. Even if only dies and the other remains, they will not be apart of the claim and they will have to pay the remaining premiums of the scheduled policy on time. This policy was devised because it was thought that it would aid in estate planning. Usually, couples made this joint life policy as it was known that there would be no charge of federal taxes when the spouse leaves unlimited assets to the other, but the beneficiaries would have to pay for them, hence the survivorship insurance funded these estate tax bills.
Here the policyholders can die at different times, yet the policy holds valid if the other insured person continues to pay the premium and when the last policyholder dies, the beneficiaries are sure to be their claim even if maybe decades from the first policy holder’s death. It should be noted that survivorship policy can intersect with this kind of insurance, but it will not pair well with any term insurance policies. The most adhering would be the permanent life insurance policy that will go well with the survivorship life insurance policy which the insured can take up. The permanent life insurance has various sub-categories that make it customisable for the insured to take them as per their needs such as
- Whole life policy which will last till you pay the premiums
- The variable life insurance with a cash value invested by the insurance company.
- The universal insurances allow the insurer to change the premium and death benefit amounts.
The above options can be availed with survivorship life insurance as per the policy holder’s choice.