Home Planning Guide Planning Tools Financial Calculators Search

Joint First-to-Die Policies Basic Features

Selected Specialized/Hybrid Policies:
Joint First-to-Die Policies
Description Premiums Cash Value Advantages Disadvantages Uses
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

© 2024 Wolters Kluwer. All Rights Reserved.