Survivorship Insurance: An Overview

Capable of covering the whole family under one policy, survivorship insurance is an appealing option for couples, since benefits pay out to remaining beneficiaries following the demise of both insured parties, and are potentially applied to estate costs and final expenses.

Policyholders also benefit from the variability of survivorship insurance, which disburses a portion of the policy’s premium toward investments chosen by the insured, leaving the remainder of the premium to posthumous costs. The variable universal survivorship insurance option adds even more benefits, including the ability to change your premium and the amount of your death benefit while still alive.

It’s also an ideal option for investors intent on maintaining familial wealth. Those with a considerable net worth will find that it’s an easy way to safeguard assets for forthcoming generations and maintain market liquidity after death for a business or estate.

Joint coverage is also cheaper than taking out individual policies and easier to qualify for than traditional, single-party insurance, especially if you have a pre-existing medical condition.

Despite the multitude of benefits, survivorship insurance also has its limitations, since shifts in marital status and estate tax laws can increase premiums. Some investors are also leery of the fact that the policy doesn’t pay out until after death, but concerns about personal mortality shouldn’t get in the way of your family’s financial future.