Permanent insurance for two people.
Benefits are paid to the beneficiaries after the second insured passes away.
This is one policy that covers the lives of two insureds, typically a married couple. The death benefit is payable only when the last of two insureds dies. Typically this policy type is used to provide liquidity to pay estate taxes when the second spouse dies. Other uses of this form of life insurance include: to protect dual income families, to provide key person business insurance, to replace an asset gifted to charity and to fund a business buyout.
Because of the timing of the death benefit payment, the premium charges for survivorship life insurance plans are generally lower than those of comparable single life plans.