Buying Tips For Second To Die Life Insurance

Second-to-life life insurance is not for people who are younger, have a small estate or where both spouses are insurable.

• Can be more affordable than large whole or universal life contracts
• Easier to qualify for than two separate policies
• Can create an estate at death
• No estate taxes on benefit
• Premium may be cheaper
• Proceeds go directly to the heirs

• Isn't paid until second death
• Policy might not be dividable
• Only for very large estates
• $100k-250k minimum
• Only for estate taxes
• May charge higher premiums
• Death benefit may be taxable

• Don’t get it if you have a small estate
• Don't buy more than will cover an estimated tax
• Don’t get it if your estate planner can eliminate your estate tax
• Get at least two proposals from an independent agent
• Find out if you're a standard risk before you get your physical
• Pay your life insurance premiums on an annual basis
• Review your policy annually so that you're not under or over insured
• Get a periodic health exam to prevent health problems
• Never take drugs, alcohol, and cigarettes before a insurance exam
• Make sure you’re given a quote for YOUR HEALTH CLASS
• Divulge ALL health problems to your agent

Find out if the company offers you a rider that permits you to split up the policy in case of divorce. Also, think about other ways to finance or reduce your estate taxes through tax planning and gifting.