Second-to-die policies
| Selected Specialized/Hybrid Policies: Second-to-Die Policies |
| Description |
Premiums |
Cash Value |
Advantages |
Disadvantages |
Uses |
| Various cash value policies (Whole Life, Universal Life, Variable Life, etc.) that insure two persons, but pay out proceeds only on the second death |
Varies with type of underlying cash value policy selected |
Varies with type of underlying cash value policy selected |
Much less costly than buying a separate policy on each insured |
Not very flexible; If needs change, these policies are less likely to retain their usefulness; Does nothing to meet liquidity needs at death of first insured |
Where liquidity need will arise only on the death of the second insured; To pay estate tax liability of a surviving spouse |
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