https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ASecond-to-die_life_insurance 2026-06-13T20:19:36Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Second-to-die_life_insurance&diff=11808&oldid=prev 2026-03-12T00:49:31Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>💑 &#039;&#039;&#039;Second-to-die life insurance&#039;&#039;&#039; is a [[Definition:Life insurance | life insurance]] policy that covers two individuals — almost always spouses — but pays the [[Definition:Death benefit | death benefit]] only after the second insured person dies. Also called survivorship life insurance, it occupies a specialized niche within the [[Definition:Life insurance | life insurance]] market, designed primarily for estate planning, wealth transfer, and business succession purposes rather than for income replacement during the surviving spouse&#039;s lifetime. Because the [[Definition:Insurer | insurer]] delays payout until the second death, [[Definition:Premium | premiums]] are typically lower than those for two separate individual policies with equivalent face amounts.<br /> <br /> 🔄 The policy works by combining the [[Definition:Mortality risk | mortality risk]] of both insureds into a single contract. [[Definition:Underwriting | Underwriters]] evaluate the health and age of each person, but the pricing reflects the joint probability that both will die within a given period — a statistically later event than either individual death. This means that even if one applicant has significant health issues, the policy may still be obtainable at reasonable rates because the healthier spouse extends the expected payout horizon. The [[Definition:Death benefit | death benefit]] is typically structured as a lump sum that the [[Definition:Beneficiary | beneficiaries]] — often children or a [[Definition:Trust | trust]] — use to pay federal [[Definition:Estate tax | estate taxes]], equalize inheritances among heirs, fund charitable bequests, or provide [[Definition:Liquidity | liquidity]] to a family business. Some policies include a [[Definition:Cash value | cash value]] component, functioning as a form of [[Definition:Permanent life insurance | permanent life insurance]].<br /> <br /> 🏛️ Estate planning attorneys and [[Definition:Insurance advisor | insurance advisors]] frequently recommend second-to-die policies when a married couple&#039;s combined estate exceeds federal estate tax exemptions. Under current US tax law, assets can pass between spouses free of estate tax via the unlimited marital deduction, so the tax liability crystallizes only at the second death — precisely when the policy pays out. Ownership is often placed in an [[Definition:Irrevocable life insurance trust (ILIT) | irrevocable life insurance trust]] to keep the proceeds outside the taxable estate altogether. For [[Definition:Insurance carrier | carriers]], the survivorship product line tends to produce favorable [[Definition:Loss ratio (L/R) | loss experience]] because the deferred mortality creates a longer accumulation period for invested [[Definition:Premium | premiums]], making it an attractive segment in the broader life portfolio.<br /> <br /> &#039;&#039;&#039;Related concepts:&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Life insurance]]<br /> * [[Definition:Permanent life insurance]]<br /> * [[Definition:Estate planning insurance]]<br /> * [[Definition:Irrevocable life insurance trust (ILIT)]]<br /> * [[Definition:Death benefit]]<br /> * [[Definition:Key person insurance]]<br /> {{Div col end}}</div>

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