Various cash value policies (Whole Life, Universal Life, Variable Life, etc.) that insure two persons, but pay out proceeds only on the first death |
Varies with type of underlying cash value policy selected |
Varies with type of underlying cash value policy selected |
Less expensive than buying a separate policy on each insured |
Not very flexible; If needs change, these policies are less likely to retain their usefulness than more general policies; If proper planning is not done, first-to-die proceeds can inflate second insured's estate tax liability |
Where the death of either of the insureds would create a liquidity need for the survivor; To fund a business buy/sell agreement |