Survivorship Insurance Planning

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An Alternative to Life Insurance

Life insurance has long been touted as a good investment to include in your long-term financial plan. After all, your family can rest easier knowing they have a buffer in the event of your untimely passing. This can be enough to hold onto other assets, such as property, and keep them from having to liquidate savings. But is it enough? After all, single-coverage life insurance is expensive, and the benefit at the time of passing may not cover the resulting estate taxes. And what about your spouse? What will they have to pay?

What is Survivorship Insurance?

Survivorship insurance (SI) is a jointly-held life insurance policy, particular to married couples. The difference between SI (sometimes known as “second-to-die life insurance”) and traditional life insurance policies is the benefit payout is not realized until the second spouse passes away. This payout then goes to the named beneficiary, usually heirs or other family members.

There are many benefits to survivorship insurance over traditional life insurance, as detailed on

  • It is usually less expensive. The policy is based on the health of two people instead of one, so the premium costs are usually less than they would be for single-coverage life insurance. Plus, only one policy is purchased instead of two.
  • The policy is easier to purchase. Again, since the health of both spouses is taken into consideration, the health problems of one person are less likely to affect when benefits are paid. In fact, according to, “[Insurance] companies are often willing to write the policy even if one of the customers is “uninsurable” by traditional life insurance standards.”
  • Survivorship insurance both builds and preserves your estate. Beneficiaries of the policy are guaranteed to receive benefits from the policy even if the policyholders spent everything during their lifetime. Plus, the payout is designed to protect against having to liquidate your estate to pay state and federal estate taxes.

How Palen Financial Can Help

While survivorship insurance has existed since the 1980s, it is still sometimes passed over in favor of traditional life insurance policies. In certain cases, buying a survivorship policy is a better fit for your investment plan and can better the odds of success in planning your estate. At Palen Financial, we can help you examine the details of your situation and help determine whether survivorship insurance is a better option for you and your loved ones. We are a licensed fiduciary and financial planner, and we take all the necessary steps to aid you in ensuring your financial future.

For more information on survivorship insurance or other insurance policies, long-term investment planning, or estate planning, contact Palen Financial today!

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