Second to die life insurance is a type of coverage that insures two people, usually married couples. It offers benefits to their heirs once the last surviving spouse dies. It is different from regular plans since the widow or widower won’t receive benefits after the death of their spouse. Its purpose is for estate planning, especially for those who own expensive assets.

For instance, the husband dies first. The husband’s estate will be passed to his wife. There wouldn’t be any estate taxes since she is the spouse. However, once the surviving spouse dies, her children would have to pay taxes on her estate. It could be as high as 48%. It may even be worth more if she skips a generation and has her grandchildren as heirs. Parents would often leave estate that’s not liquid. A big portion of it may be in a real estate or in a business enterprise. This leaves beneficiaries without cash to pay for the estate tax, which may force them to sell some or all of their assets. That’s when second to die life insurance becomes useful. It eliminates or minimizes the burden of having heirs to pay estate taxes. It also protects the children and the family business, provides inheritance, and establishes a legacy.

There are plenty of perks when one chooses to buy this plan. It is quite cost-effective since to buy a joint policy is much cheaper than to purchase two separate ones. Another reason why it’s cheaper is insurers will only have to pay one benefit after the last policyholder dies. The underwriting wouldn’t be as strict. Underwriting is the process that insurers use to assess a customer’s eligibility to receive their services. The insurers won’t have to worry if either of the married couple is not of good health since they will only have to pay following the death of both policyholders. It also assures that the estate inherited remains intact. The protection it covers is for a lifetime, even after age 100 in many cases. It also provides two married people relief from worries about who will die first.

Second to die life insurance may also have a few drawbacks. In the event of a divorce, it may cause complications. The policy may become dissolvable or expensive. It may also be affected by changes in estate tax law. It is important to research how these changes have impact. There won’t be benefits paid once the first spouse dies. Since its prime purpose is estate planning, it wouldn’t be advisable for people who expect typical benefits that most policies offer.

If one plans to buy a second to die life policy, they need to make sure that they understand completely the ins and outs of it. Don’t be satisfied after hearing from one agent. To ensure a complete estate plan, it’s recommended to involve the services of a certified financial planner, an estate attorney and possibly the family accountant. It is also important to consider the possibility of divorce, changes in estate tax laws, or changes in company policies.

Are you looking for more information regarding Second to die life insurance ? Visit http://www.termlifeinsurance.com/ today!

Are you looking for more information regarding Second to die life insurance ? Visit http://www.termlifeinsurance.com/ today!

Author Bio: Are you looking for more information regarding Second to die life insurance ? Visit http://www.termlifeinsurance.com/ today!

Category: Automotive
Keywords: additional features include,safety features,luxury cars,prestige cars,introduce safety features