Second Death Insurance

What Does Second Death Insurance Mean?

Second death insurance, also known as dual-life insurance, survivorship policy, or second-to-die insurance, is a type of life insurance policy that pays the death benefit only after both joint policyholders have passed away. Unlike traditional life insurance policies, it does not provide a death benefit if only one policyholder dies.

Insuranceopedia Explains Second Death Insurance

Second death policies are typically purchased by married couples, with the death benefit intended for their children.

However, some complications can arise with this type of insurance. A divorce may require a complex reassessment of the policy’s provisions, and the surviving policyholder may struggle to continue paying premiums after the death of the other policyholder. Additionally, there may be concerns related to estate taxes.

This type of policy can be more affordable than individual life insurance policies because the insurance company typically has a longer period before it is required to pay the death benefit.