Tuesday, April 17, 2007
Different Strategic Uses of Survivorship Life Insurance Policies
Survivorship life insurance (also called joint and survivor life insurance, second-to-die life insurance, survivor whole life and survivor universal life) provides coverage for two people and the benefits are paid out only after both policyholders have passed on. Since estate taxes could be delayed for married couples until both have died, survivorship life insurance is used to mainly to pay the estate taxes after the death of the two policyholders.
If the insured husband and wife own the policy it would not only increase the estate but would be subject to taxes as well. Generally, survivorship life insurance policies have a third-party owner such as an irrevocable life insurance trust (ILIT) or an adult child/children to handle/offset estate taxes.
Different Strategic Uses of Survivorship Life Insurance Policies
Source: Insurance News Net
If the insured husband and wife own the policy it would not only increase the estate but would be subject to taxes as well. Generally, survivorship life insurance policies have a third-party owner such as an irrevocable life insurance trust (ILIT) or an adult child/children to handle/offset estate taxes.
Different Strategic Uses of Survivorship Life Insurance Policies
Source: Insurance News Net
Permalink posted by armandn @ 7:45 AM 
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