Just imagine a world where you and your spouse can have a joint life insurance policy, where both of you can carry out the life insurance process together as a team. That’s precisely the purpose of survivorship life insurance. Nevertheless, there are some truths you need to about survivorship life insurance.
- Don’t be deceived, this insurance policy is only attractive for married people who have the same beneficiary in mind or who wants to use the death benefit to donate to charity.
- Getting a survivorship life insurance policy also means you own a permanent life insurance policy. In order words, this insurance policy is not for people who want temporary coverage.
- If you don’t trust your partner or if you foresee a divorce in the fortune, avoid this insurance policy.
- Survivorship life insurance is cheaper than getting a separate life insurance policy for you and your partner.
- While survivorship life insurance covers two people, both of you can only get your death benefits until both of you are not more. Let’s say, you bought a survivorship life insurance policy with your spouse. If you are the first person to die, your wife will not get any death benefit. But if both of you are died, your beneficiaries will receive the death benefits.
- Survivorship life insurance requires only single premium payment. That is, you and your significant partner will work as a team to pay the premiums.
- The death benefit of survivorship life insurance is free from tax.