According to The Zebra, 83% of Americans would purchase life insurance if it were easier to understand. Another Zebra statistic reveals that 52% of Americans believe life insurance is too expensive. Survivorship life insurance addresses both concerns. The team at Michael Taylor Agency explains the policy and why it’s gaining popularity.

What is Survivorship Life Insurance?

Survivorship life insurance is a joint life insurance policy that compensates loved ones after both policyholders pass away. While most policyholders are married couples, they can also be business partners, non-married couples with children, or individuals with similar financial interests. Alternative names include second-to-die life insurance, dual life insurance, and joint survivor life insurance.

All survivorship life insurance is a permanent policy with a guaranteed payout. However, they are divided into two subcategories: whole and universal. Whole survivorships rely on a fixed rate to build cash value. Universal survivorships rely on accumulation to build cash value. Choose variable universal life insurance if you want investments to build cash value. Choose indexed universal life insurance if you prefer to gamble on stock market performance to build cash value.

Estate planning is the primary reason survivorships appeal to customers in Columbia, SC. Another reason is that a spouse’s death would be a severe financial burden to the other spouse. Survivorship life insurance benefits people who cannot get traditional life insurance, as the other person is healthy enough for both to obtain coverage. Other reasons include affordability and individuals with special needs.

How Survivorship Life Insurance Works

Speak to one of our agents at Michael Taylor Agency to discuss and enroll in a survivorship life insurance policy. Both names will be on the policy. Pay the premiums every month. Should one of you pass away, the surviving policyholder keeps the account active by paying the premiums. When the surviving policyholder dies, we pay a lump sum to chosen beneficiaries.

Our company partners with several survivorship life insurance carriers. We will discuss them and answer questions before you decide if this move is right for you. Call us or visit our Columbia, SC office for more information.