If life insurance coverage for two people is needed, Low-Load Survivorship Universal Life Insurance might make sense for your client. This specially designed policy covers two lives, with the death benefit payable only at the second death. This type of coverage is also known as a "joint and last survivor" or "second-to-die" policy. Any two people who share a common reason to be insured may apply for a Low-Load Survivorship Universal Life policy.
Survivorship Universal Life offers the same features and benefits of an individual universal life insurance policy-including death benefit protection, premium flexibility, tax advantages, and access to policy values. Because it insures two people with one policy, insurance expenses are often lower and therefore premiums for Survivorship Life can be less than those of two individual policies.
When to Use Survivorship Life Insurance
Survivorship life insurance is best used when proceeds are not needed at the time of the first insured's death and deferring the death benefit will solve a financial planning issue. Most often, it is used for:
- Estate Tax Planning
When husband and wife are jointly insured, the policy provides funds to help pay estate taxes due at the second death. Typically, an irrevocable trust is named as the owner and beneficiary of the policy to keep the proceeds out of the estate. - Business Coverage
When two owners are essential to a business, the policy can provide funds to help protect the business after the death of the last essential owner. - Dependent Protection
When two insureds are responsible for a dependent, survivorship life insurance can help replace the loss of funds to provide care.
For more information or help determining if survivorship life insurance might be right for your client, call the Ameritas Advisor Services professionals at 1-800-555-4655.
The Ameritas Low-Load Survivorship Universal Life insurance policy (Form 3165) is issued by Ameritas Life Insurance Corp. It is possible that coverage may not continue to maturity date if policy costs reach maximum guaranteed levels, and premiums continue to be paid at the initial planned premium level.
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