The Differences between First to Die and Second to Die Life Insurance
Were you aware that life insurance policies are customizable to your specific needs? There are two powerful options that married couples looking to lower the cost of life insurance may want to consider: joint life insurance.
There are two types of joint life insurance policies:
First to Die Life Insurance
A first to die life insurance policy may be a good fit for married people who would like their surviving spouse to maintain a certain lifestyle, but want to pay less than it would cost for two individual policies. The cost for this type of insurance will not be significantly less, however, any cost savings in these current times can be extremely helpful. Since the death benefit is paid out to the surviving spouse after the death of the first, the surviving spouse may need to buy new coverage.
Second to Die Life Insurance
Also known as survivorship insurance, this form of life insurance is more often geared toward affluent people who may be concerned with the potential for significant estate taxes that will need to be paid upon their death. These policies also tend to be less expensive than purchasing two individual insurance policies. This type of life insurance policy can also provide protection to those whose health might prevent them from being eligible (or uninsurable) for an individual life insurance policy.
The biggest risk with joint life insurance policies is divorce. Although it’s not a subject that currently happily married couples want to talk about, but it does happen. These insurance policies can come with optional riders or clauses that could allow the policy to be split into two individual policies. There may be restrictions surrounding these riders or clauses but it’s something to review when looking for the best life insurance policy for you and your family.
About the author: Lauri Pella has been in the life insurance business for over 29 years. She is a fitness enthusiast who actively supports foundations like the American Cancer Society, and the March of Dimes. Lauri would love the opportunity to help your family have a peace of mind, knowing they have the right life insurance coverage. You can contact Lauri at 1-800-651-1953 or LPella@Pivot.com.