To help you determine if a second-to-die policy is right for you, we’ve compiled a list of answers to commonly asked questions about how these policies work.
How do second-to-die policies work in Salt Lake City?Unlike individual life insurance policies that are paid out in the event of an individual’s death, second-to-die policies aren’t paid out until both insured persons are deceased. With a second-to-die policy, no benefits are paid to your spouse once you pass away. Instead, these funds are held until both spouses have passed away, and the death benefit is then granted to the designated beneficiaries.
What are the benefits of second-to-die policies?
There are plenty of reasons couples choose second-to-die policies when planning their estate, some of which are useful to you now or will be helpful to your beneficiaries after your death.
Some of the benefits of second-to-die policies include:
- Lower premiums
- Easier to qualify
- Estate Maintenance
- Offsets taxes
Because one policy covers two people rather than one, the premium for a second-to-die policy tends to be less than two individual life insurance policies, which makes it a more economical option for many people.Another reason to choose a second-to-die policy is that they have easier qualification standards. The health of both parties is considered when qualifying for a second-to-die policy, so if one person is in poor health, the other spouse’s good health may mean they’ll still both qualify for this insurance.
Why should I choose a second-to-die policy?
One of the most common reasons couples choose a second-to-die policy when planning their estate is that protects your children or beneficiaries from costly estate taxes after your death.With a second-to-die policy, your beneficiaries can have the assurance they’ll receive a minimum amount of money to cover estate taxes once both policyholders are deceased. When beneficiaries face substantial inheritance taxes, second-to-die policies help offset these fees, giving you peace of mind that your loved ones are cared for after you’re gone.
Contact Salt Lake City Insurance today to find a second-to-die policy that fits your needs and your budget.