Survivorship Benefit

What Does Survivorship Benefit Mean?

A survivorship benefit refers to the monetary benefits that a survivor of an insured policyholder may receive after the policyholder’s death.

Insuranceopedia Explains Survivorship Benefit

For example, a long-term care policy with a survivorship benefit rider allows the surviving insured partner to continue enjoying the policy without having to make further premium payments. Upon the death of one of the insured, the insurance company forgives any future premiums. For retirement benefits, life insurance, and annuity products, a survivorship benefit provides a monthly income to the surviving partner based on the specific terms of the policy. This is one reason couples often look at annuity products that pay an income stream to a surviving partner as part of their retirement planning. The exact rules on premium forgiveness and survivor payouts vary, so it’s worth comparing how different life insurance companies handle these riders before buying a joint policy.