If you’re looking for survivorship life insurance quotes, you’ll be pressed to find anywhere you can get them without talking to an agent first. They are a highly customized and come in many different forms for many different purposes.
Survivorship life insurance is dependent on two people, and is used for specific reasons most of the time.
Because it only pays on the second death, it’s not the typical life insurance you’re probably thinking about, although they share many of the same attributes.
If you need survivorship life insurance quotes, we can help!
We can help you identify what you may need it for, what type of survivorship policy will work best, and we’ll find the carrier to match your needs and budget.
Survivorship Life Insurance Quotes
Survivorship life insurance, also called second-to-die life insurance, is an insurance product which is utilized on the lives of two individuals, not just one. It only pays after both insureds have passed, not when the first does. This is the primary difference between survivorship life and standard life insurance.
The reason for it’s existence is not because it solves the immediate cash needs when one person is living, but when both have passed. It’s used almost entirely for leveraging their dollars while living, to get the best lump sum available when they’re gone. Here are some of the main reasons it’s used today:
- Estate Planning
- Legacy Planning
- Business Continuation Planning
One of the primary uses for survivorship life insurance is estate planning. The umbrella of things it can do for estate planning is large, and encompasses many different things for many different people. An estate can be so large it’s going to owe significant estate taxes, or the estate could be cash poor and just not very liquid. In either case, the benefit of the policy is to provide a lump sum of cash when the estate is to be settled in order to pay taxes, fees, or provide the liquidity necessary to disband the assets efficiently.
Legacy planning is another item survivorship life insurance can be purposed for. Any estate can pass on assets, but there are more efficient and less efficient ways of doing so. Let’s say, for example, you were to pass on an IRA of $100k. You heirs wouldn’t be a recipient to not only the asset, but the burden of taxes due. They would, essentially, not receive a net total of $100k. Yet, if your life insurance policy was for $100k, your heirs would indeed receive the $100k. (We are not tax advisors, and there are exceptions to these!)
Business continuation planning is a little more rare than the other two, because it’s such a specific type of plan, but a survivorship life policy can be a great fit under the right circumstances. There are different ways to leave a running business behind, and much like charitable giving or legacy planning, there are efficient and inefficient ways of doing so. But not only from the cash needs side, but also the ownership side. Not all businesses have just one owner, and not all family members want to continue within the business laid before them. Life insurance can provide different ways to allocate resources of a business when the owners have passed.
Steps To Getting Survivorship Life Insurance Quotes
Because survivorship life insurance is less common than your traditional life insurance policies, there are some things you’ll need to do up front with a fine tooth comb in order to get the most benefits from the policy.
- Speak with your tax advisor
- Speak with your legal advisor
- Work with an experienced, independent agent
- Communicate with all parties together
In order to find out if you even need a survivorship life insurance policy for your situation, consider talking to your tax advisor first to see what the most beneficial plan would be for you down the road. There are multiple ways of planning your estate or charitable giving efforts, so having an idea of your options ahead of time could be a powerful aid.
Speak with your legal advisor next to see if there are ways you can assign your assets now, which could possible prevent the need for a lump sum of cash later. This may not fit your situation, but again, it could prove to be a viable option which could save you years of life insurance premiums.
Using an independent life insurance agent who has experience with this type of matter is crucial as well, because there are not only different types of policies to work with, but different companies, different premium options so you can leverage your dollars best, and even special ways of setting up the policy itself to assign the cash where needed.
But by far the most critical thing you can do is to involve all parties in the matter. The tax advisor might be able to point out something the other advisors missed, and vise versa. Everyone working as a group helps to ensure your situation is looked at from the birds eye view and under the microscope. This type of planning can be quite permanent, so you’ll want to make sure you do it right.
If you think you may have a need for survivorship life insurance quotes, feel free to contact us and we’d be happy to assist you further.