Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Understanding the Basics of Survivorship Life Insurance

By Davidrichard Subscribe to RSS | August 7th 2012 | Views:

Survivorship Life Insurance is also known as the Second to Die Life Insurance in terms in insurance industry. Unlike the traditional insurance policies, this insurance covers the life of two individuals. This policy chosen by husband and wife mostly but sometimes this is also preferred in a civil union.

This policy is little different from the usual insurance policies in one main way. In case of death of an insured, the insured amount is not paid out to the survivor of the policy. The insured amount is paid only if the second survivor also passes away. In the federal estate tax laws, the survivor spouse is usually given all the assets irrespective of the amount of assets. But in case of Survivorship Life Insurance policy, taxes are not levied at the time of death of one partner. The insured amount is taxed only when the second survivor also passes away, while the benefits are passed on to the children. This kind of policy is usually taken to help the next generation so that their children can get an amount later on. This policy is a favorite among many rich persons. The policy helps to give a life to the younger people to lead a better life when there is no one to take care of them. The policy owners try to save their wealth by taking the Survivorship Life Insurance policy.

Survivorship Life Insurance policy charges less premium when compared to other life insurance policies. This is a main advantage of this policy. In this policy the premium amount is decided based on the life expectancy of the two persons on whom the policy is taken. The insurance company need not pay any amount until there is one survivor. As a result, this policy is must cheaper when compared to buying two separate life insurance policies. There is the Universal life insurance where one can decide on the premium and death benefits to be arrived later. This also allows you to adjust the amount according to your evolving needs. This policy provides lesser guarantee at lower premiums.

This policy is preferred by companies even when one of the spouse is not well and no policy can be taken on the individual due to the health issues. Companies need to pay money only when there is no survivor. So this policy is taken by persons with not the best of health. This method is often used by wealthy persons to save their money for the future generation. They want to secure their wealth for their heirs by taking Survivorship Life Insurance policy.

In this type of policy, the insured money is given only to the children. The amount of the wealth is directly given to the heirs. This will help them to pay the taxes later on. Unlike the Universal life insurance and whole life policies, there is no investment component in this kind of insurance policy. Survivorship Life Insurance policy is generally preferred by parents of mentally ill children as they can be assured of transferring the insured money only to their children.

Davidrichard - About Author:
Author is expert in insurance sector and works for Beamalife Corporation. At present he is writing on cash value life insurance, fixed annuity, universal life insurance and more topics. For more information click here.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Insurance Articles Subscribe to RSS

Commercial general liability insurance to cover major issues
Published by Andrew Edwards on February 20th 2012 | Insurance
What kind of business developed by you, it is a major question which signifies type of coverage need...
Learn to find cheaper van insurance
Published by Robmarshall on March 28th 2012 | Insurance
Purchasing cheaper van insurance is not a very difficult task if an individual knows how to go about...
Provide the best insurance for your car with the best insurance quotes
Published by Jameshaven on March 5th 2012 | Insurance
You just purchased a car recently, it is now very important for you to secure your car with the car ...
Private Hire Taxi Insurance will provide you best insurance
Published by Atif Saleem on December 10th 2011 | Insurance
If you have taxi driver and want to get batter taxi insurance with a driver, you can get information...
Effective Van insurance purchasing ideas and related information
Published by Gregorypeck on February 28th 2012 | Insurance
Making monthly installment on your van insurance policy isn’t more terrible than facing a heavy lo...
Know more about cheap car insurance
Published by Anneshirley on April 12th 2012 | Insurance
It is not a tough thing to find car insurance, but yes it is very hard to find the classic car insur...
Cheap classic car insurance – tips to find the best company
Published by Anneshirley on March 20th 2012 | Insurance
Having a classic car is a great source of pleasure. No matter for what purpose you use your classic ...
Importance of one’s own vehicles insurance
Published by Shyam Singh on March 2nd 2012 | Insurance
Suit one’s own insurance policy with each of your must have: Ones own vehicles insurance must have...
Finding cheap Arizona auto insurance
Published by Auto Insurances on January 13th 2012 | Finance
Let’s not take more risks with our valuable autos. While applying for Arizona auto insurance make ...
Tips to choosing the Apt travel insurance policy online
Published by Sandy Tata on April 20th 2012 | Insurance
Travel insurance has become the need of the hour for travelers. The needs of every person setting ou...
Professional indemnity insurance- secure your profession
Published by TimHarris on January 4th 2012 | Insurance
Being a professional is not a kid’s play. One has to serve untiringly to please the customers. But...
Commercial insurance quotes: preliminary walk towards sheltered business
Published by Andrew Edwards on January 18th 2012 | Insurance
The term quotes meant a lot to us, quotes are thoughts shared by legendary people...
Georgia health insurance plan is excellent option for your health cover
Published by on June 23rd 2012 | Insurance
Only getting health insurance policy is not important, getting the right one is more important, beca...
Oklahoma- the home of the best car insurance
Published by Usautoinsurances on January 16th 2012 | Insurance
All motorists deriving on the Oklahoma roads need to carry with them proper auto insurance. This is...
Tips for effective Car insurance comparison
Published by Geenadavis on March 28th 2012 | Insurance
In order to obtain the lowest insurance rates it is a wise idea to compare various quotes. This will...
Significance of business interruption insurance for corporate houses
Published by Andrew Edwards on December 14th 2011 | Insurance
To reach the elevation of success we have to plan our business administration programs...
Resources for searching cheapest van insurance
Published by Gregorypeck on March 19th 2012 | Insurance
There are various sources from where an individual can buy cheap van insurance. Comprehending where ...
Obtain the exact type of coverage through business insurance plan
Published by Andrew Edwards on April 14th 2012 | Insurance
As a business owner it is your responsibility to look into the plans suitable for your company...
Benefits of getting insurance policy specially when working abroad in search of earning and job
Published by Andy Robert on December 22nd 2011 | Insurance
Although the insurance policy might look expensive at first sight but the in-fact insurance policy i...
What are the advantages of buying insurance online at my cheap car insurance
Published by Harrisonford on April 12th 2012 | Insurance
Cars have become the basic necessity of most of the people. Everyone wants to have his/her own trans...