Survivorship Life Insurance Calculator
Calculate Second-to-Die Policy Costs
What Is Survivorship Life Insurance?
Survivorship life insurance (also called second-to-die insurance) covers two people under one policy and pays out only after both insured parties have passed away. Because the insurer faces reduced risk — the benefit isn't paid until the second death — premiums are significantly lower than two separate policies. This makes survivorship coverage an efficient tool for estate planning, particularly for funding estate taxes that come due at the second spouse's death, leaving assets intact for heirs. It is commonly held inside an Irrevocable Life Insurance Trust (ILIT) to keep proceeds outside the taxable estate.
Frequently Asked Questions
When does a survivorship policy pay out?
The death benefit is paid after the second insured person passes away. It does not pay on the first death, which means it is not suitable for income replacement — only for estate or legacy planning needs.
Why is it cheaper than two individual policies?
Actuarially, two people are unlikely to die at the same time. Insuring the joint life expectancy (second to die) reduces the insurer's risk, resulting in lower blended premiums.
What is an ILIT and should I use one?
An Irrevocable Life Insurance Trust holds the policy outside your taxable estate. This ensures the death benefit is not included in the estate for tax purposes. Consult an estate attorney to determine if an ILIT is appropriate.
Can survivorship policies build cash value?
Yes, permanent survivorship policies (whole life or universal life) accumulate cash value over time, which can be borrowed against or used to pay future premiums.
What happens if we divorce?
Divorce complicates survivorship policies significantly. Most insurers allow the policy to be split into two individual policies upon divorce, though underwriting may be required. Review your policy's divorce provisions carefully.
Disclaimer: Estimates are for educational purposes only and do not represent actual insurance quotes. Rates vary by insurer, state, and individual underwriting. Consult a licensed insurance professional.