The best second to die life insurance companies:
One thing about second to die policies is people usually buy them later in life after they have accumulated enough wealth to be on the hook to pay estate taxes. One of the issues you run into as you age is qualifying for life insurance. As you age you develop more health challenges, which can affect the cost and rate class you are eligible. This is why we like Principal as they have great underwriting options for an individual with health challenges particularly on second to die life insurance policies.
Principal is one of over 40 life insurance companies we represent, but they are a great life insurance company to work with for second to die policies because they are effortless to work with. They also have great underwriting features such as lifestyle credits and an automatic standard approval program which offer a ton of benefits to clients who are impaired risk or may be facing a few health challenges.
When you combine the healthy lifestyle credits along with their automatic standard approval program, it can drive down the premiums by getting impaired risk clients a better rate class. Which can save the consumer thousands of dollars?
Principal also offers a feature for no exam up to $1,000,000 for individual applicants. This can help speed up underwriting and the issuing of the policy.
With survivorship life insurance you’re typically looking for the death benefit to pay your estate tax obligation, and your goal should be to keep the premiums as low as possible.
Types of second to die policies
When it comes to buying second to die life insurance, you will need a permanent life insurance policy. You should never try to use a term policy in this situation as you never want to have a chance of outliving the policy. After all, you’re most likely set this policy up to pay for taxes and what would happen if you were to outlive the policy, and you had no life insurance money in place to pay the taxes.
You can use two types of permanent options.
- Whole Life Insurance
- Universal Life Insurance
Universal life insurance survivorship policy
A survivorship universal life insurance policy is the most cost-effective way to buy a second to die type of life insurance policy. A universal life insurance policy will give you the permanent policy you need with the lowest premium.
A universal life policy can come with a no-lapse guarantee which will make the policy last to age 121 even if the accumulated cash value in the policy runs dry. With a survivorship universal life insurance policy, the premiums will remain level throughout the life of the plan. They also offer flexible payments, so if you needed to miss a payment, it would not lapse the policy, this is a feature the whole life policy does not provide.
A guaranteed universal life insurance policy is what we recommend if you are not worried about cash value, and you want affordable permanent protection.