Did you know that life insurance can be used for more than just replacing your income or paying off debt if you pass away? Although those are both great purposes, we want to discuss another lesser-known solution that life insurance can provide.
There are life insurance products that allow for multiple insured individuals to be underwritten together. These policies will pay a death benefit once the surviving insured passes away. Now, you may be asking, “what is the benefit of life insurance to people who are gone?” The benefits are ultimately for their estate and heirs.
Below are a few examples of how a survivorship (or second-to-die policy) could provide tremendous benefit to clients:
- Charitable Giving
- Leave a financial legacy to a church, school, or non-profit organization
- Estate Tax Payments
- Provide cash to pay for estate tax liability above the gift tax exclusion limit
- Estate Liquidity
- Provide cash to pay for bills and debt obligations
- Specific Bequests
- Leave a financial legacy to individual heirs
If you are interested in any of these above examples and want to know if a second to die policy is appropriate for your situation, please contact us today.
By: Gino Wickman & Mark C. Winters