Survivorship Life Insurance

Updated: 09 June 2023

What Does Survivorship Life Insurance Mean?

Survivorship life insurance is a type of permanent life insurance that insures two people, usually a married couple, and pays the death benefit to beneficiaries only after the second person passes. The coverage stays in force as long as the policyholders keep paying their premiums and at least one of the insureds is alive.

Survivorship life insurance may also be known as second-to-die insurance or dual-life insurance.

Insuranceopedia Explains Survivorship Life Insurance

Survivorship life insurance is usually less expensive than permanent life insurance for just one person. Since it covers two people, the policy will most likely last longer due to the lower probability of two people dying early as opposed to just one. As a result, the insurance company often has more time to collect premiums; thus, they can charge less per year.

Couples interested in estate planning and those looking to help their heirs pay for estate taxes and other settlement costs often opt for a survivorship life insurance policy. In doing so, the couple is able to afford a much larger death benefit for the same amount of money, which can help their heirs manage final expenses and inheritance taxes while also leaving them more money for the future.


Second-to-die Insurance Dual-life Insurance

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