Second-to-Die Insurance

North American (NACOLAH), United of Omaha Life Insurance Company

A form of insurance which pays a death benefit only upon the death of the last surviving insured person. Often used by a married couple in estate planning. It is also called dual life insurance or survivorship insurance.

How it Works

The death benefit is not paid to the beneficiary until the death of the second insured. These survivorship life insurance policies are generally available as either whole or universal life policies, and second to die life insurance often provides more affordable life insurance than two separate policies.

The reason a survivorship life insurance policy doesn't pay until the second person dies is that it is designed to pay or assist paying for estate taxes. Estate taxes can be delayed until both spouses die thus the design of these special insurance policies.