Term Life Insurance Articles
Survivorship Insurance: An Uncommon, But Valuable Form Of Term Life Insurance Coverage
2010-01-12
There are quite a few options to choose from when deciding on a term life insurance policy for yourself. One of the least common (but certainly no less useful) options is survivorship insurance. This is a helpful form of term life insurance for some buyers, depending of course on a number of factors and the way that the policy is initially set up.
Survivorship insurance is a type of coverage that is exclusively purchased by couples. That's because it's a form of dual term life insurance. This means that, most commonly, the policyholders tend to be married, though other couples can find survivorship coverage through many insurance companies. Survivorship insurance delays payout of benefits until the second policyholder dies. This may seem odd; after all, most of the time, term life insurance policies are bought to ensure the financial well being of the other partner. However, there's a very good reason for the payout schedule of these policies. They're designed to pay for estate taxes, which can be assessed after both partners in a marriage die. It's a great form of insurance for wealthier individuals who are leaving a great deal of their estate to children (or any other beneficiaries, really). It also requires some fairly complex manipulation of tax law to work properly. Before buying a survivorship insurance program, it's vital to speak with a lawyer to determine how the policy will work, and what steps will need to be taken in order to ensure that estate taxes are properly paid after the death of both policyholders.
As with any other form of term life insurance, survivorship insurance is available in varying amounts. Premiums are decided in a similar manner to other forms of joint life insurance. There are also similar exclusions of payout benefits. Additionally, there are complex regulations in most contracts detailing the payout of contracts and the options that policyholders might have under the policy. It's very helpful to buy survivorship insurance from a company that specializes in it so that you can ensure your estate will be properly handled. Finding an insurance agent with a good deal of experience isn't too difficult, and a reputable agent will help policyholders understand the various ins and outs of their contracts.
When looking for a term life insurance quote, be sure to consider less traditional forms of insurance, such as survivorship insurance, particularly when you're buying a policy with another person. As the policy type is modeled around estate taxes, this type of coverage is not for everyone. Young buyers looking for low rates can find policies better suited to their needs. However, it's a worthwhile plan for some consumers, and can make a big difference in how an estate is handled.
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There are quite a few options to choose from when deciding on a term life insurance policy for yourself. One of the least common (but certainly no less useful) options is survivorship insurance. This is a helpful form of term life insurance for some buyers, depending of course on a number of factors and the way that the policy is initially set up.
Survivorship insurance is a type of coverage that is exclusively purchased by couples. That's because it's a form of dual term life insurance. This means that, most commonly, the policyholders tend to be married, though other couples can find survivorship coverage through many insurance companies. Survivorship insurance delays payout of benefits until the second policyholder dies. This may seem odd; after all, most of the time, term life insurance policies are bought to ensure the financial well being of the other partner. However, there's a very good reason for the payout schedule of these policies. They're designed to pay for estate taxes, which can be assessed after both partners in a marriage die. It's a great form of insurance for wealthier individuals who are leaving a great deal of their estate to children (or any other beneficiaries, really). It also requires some fairly complex manipulation of tax law to work properly. Before buying a survivorship insurance program, it's vital to speak with a lawyer to determine how the policy will work, and what steps will need to be taken in order to ensure that estate taxes are properly paid after the death of both policyholders.
As with any other form of term life insurance, survivorship insurance is available in varying amounts. Premiums are decided in a similar manner to other forms of joint life insurance. There are also similar exclusions of payout benefits. Additionally, there are complex regulations in most contracts detailing the payout of contracts and the options that policyholders might have under the policy. It's very helpful to buy survivorship insurance from a company that specializes in it so that you can ensure your estate will be properly handled. Finding an insurance agent with a good deal of experience isn't too difficult, and a reputable agent will help policyholders understand the various ins and outs of their contracts.
When looking for a term life insurance quote, be sure to consider less traditional forms of insurance, such as survivorship insurance, particularly when you're buying a policy with another person. As the policy type is modeled around estate taxes, this type of coverage is not for everyone. Young buyers looking for low rates can find policies better suited to their needs. However, it's a worthwhile plan for some consumers, and can make a big difference in how an estate is handled.
