Second Death Insurance

What Does Second Death Insurance Mean?

Second death insurance (also known as dual-life insurance, survivorship policy, and second-to-die insurance) is a type of life insurance policy that only pays the death benefit when both both of the joint policyholders pass away. Unlike other life insurance policies, there is no death benefit paid if only one of the policyholders dies.

Insuranceopedia Explains Second Death Insurance

Second death policies are typically purchased by married couples and the death benefit is intended for their children.

Some complications can ensue with this type of insurance. A divorce will require a lot of untangling of the provisions of the policy. Or a surviving policyholder may find themselves unable to continue paying the premiums after the death of the other policyholder. There are also issues related to estate taxes.

This policy may be more affordable than life insurance with a single policyholder because there will likely be a longer period before the insurance company has to pay the death benefit.