Joint Last-to-Die Life Insurance: Estate Planning for Couples

Joint Last-to-Die (or Survivorship) Life Insurance is a type of permanent policy that covers two individuals (usually a married couple) but pays out the death benefit only after the **second person dies**. This policy is a specialized and highly effective tool in advanced estate planning.

Purpose in Estate Planning

The primary use of a Joint Last-to-Die policy is to provide liquidity for expenses that are due upon the death of the second spouse, specifically:

• Estate Taxes: Due to the unlimited marital deduction, estate taxes are usually deferred until the death of the surviving spouse. The policy provides cash to cover this liability, preventing the forced sale of assets (like a business or real estate).
• Wealth Transfer: It can be used to fund a life insurance trust (ILIT) to transfer wealth efficiently to children or grandchildren.

Cost Efficiency

Because the insurance company only has to pay one claim after both insureds have passed, the premium for a Joint Last-to-Die policy is typically **significantly lower** than the cost of two separate permanent policies for the same total death benefit.

Disclaimer: This content is for informational purposes only and is not financial or legal advice. This policy should be integrated into a comprehensive estate plan designed by a qualified attorney and financial planner.