What Does Second-To-Die Insurance Mean?

It is a special life insurance type which provides coverage on two people. The most common case is when a husband and a wife choose this option of concluding a second-to-die contract.

The most important characteristic of this insurance type is that inheritors receive the benefits resulting from this policy only after the death of the last surviving policy owner. Moreover, the second-to-die insurance policy is helpful in fortune or property planning.

The main difference between this option and the traditional life insurance is that the latter does not provide any benefits to the surviving partner.

Second-To-Die Insurance Explained

However, second-to-die insurance is not made for the policy owners, but to their children. So parents usually conclude this type of contract in order to provide their children with benefits. A good example may be an insurance policy intended to provide support for a child to pay estate taxes.

Another name used for the very same thing is ‘Dual-Life or Survivorship Insurance’.