Second-to-Die Insurance

Insurance for a married couple that pays a death benefit only on the death of the last spouse to die. This payment method makes the cost of such insurance less than insurance on just one person’s life. This type of insurance is designed for an estate plan where, on the death of the first spouse, all assets are given tax free to the surviving spouse using the unlimited marital deduction. On the death of the second spouse, the insurance benefit is paid and provides the cash to pay the estate tax. Also called survivors insurance.