Second-To-Die Insurance


DEFINITION of 'Second-To-Die Insurance'

A type of life insurance on two people (usually married) that provides benefits to the heirs only after the last surviving spouse dies. This differs from regular life insurance in that the surviving partner doesn't receive any benefits after their spouse dies. Thus, second-to-die insurance is used for estate planning.

BREAKING DOWN 'Second-To-Die Insurance'

Parents who take out this type of insurance are thinking of their children, not themselves. For example, it could be designed to pay estate taxes or support any surviving children. It is also called "Dual-Life Insurance" and "Survivorship Insurance".

  1. Additional Death Benefit

    An amount that is paid to the beneficiary of a life insurance ...
  2. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
  3. Death Benefit

    The amount on a life insurance policy or pension that is payable ...
  4. Life Insurance

    A protection against the loss of income that would result if ...
  5. Estate Tax

    A tax levied on an heir's inherited portion of an estate if the ...
  6. Waterfall Concept

    A life insurance plan that provides a tax benefit in regards ...
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