2nd to Die Life Insurance Policy

by Jeff Rose on September 14, 2016 · 0 comments

2nd to Die Life Insurance PolicyIn life, you and your marriage partner may find yourselves facing many troubles and situations. While many of these are easier when together, that is not always going to be the case.

There are times when life is taken from a person quickly, leaving the partner without them. You never know what’s going to happen tomorrow. You can’t predict the future, but you can prepare for the worst. Nobody wants to think about losing their spouse, but it’s a conversation that you should have

To soften the blow of this, insurance is often used to offer financial stability when the cost of the funeral, hospital stay, and bills are too much to handle alone. The cost of a funeral alone can easily add up to $10,000 or more. This can be a heavy bill to leave behind for your family to pay.

When the surviving partner dies, though, that same insurance might not be enough. For many, a 2nd to die life insurance policy is the go-to for coverage, security, and stability when it comes to dealing with everything left behind.

Common Use for 2nd to Die Life Policies

Most insurance policies work by providing money to a specific person after the one who was insured passes. This helps to ease the financial burden left behind by a death, which includes several expenses and more stressful bills that are without that extra paycheck.

With 2nd to die life insurance, though, two people are covered to pay for the costs associated with an estate. Unlike your ordinary life insurance, this only pays out when both parties have passed, as the name would suggest. It is mostly to cover the taxes and expenses with an estate so that the heir does not have to pay.

An estate comes with costs that could otherwise ruin its value, or at least drop it dramatically. When passing this to an heir, those costs could cause them to receive far less than promised. Depending on the situation for which this person is receiving the estate that can be damaging. Not only that, but you would also not be giving the person as much as you had hoped. There is a reason they were chosen to receive your estate, obviously, and not giving them the full amount was probably never your plan. With this, you can ensure that they receive as much of the full amount as possible.

There are thousands of families members that find themselves with drastically less heritage than they assumed they would receive because of unpaid expenses, taxes, fees, and much more. If you want to leave your legacy with your children or loved ones, a 2nd to die life insurance policy will protect your savings and allow your inheritance to reach its full potential.

Estate Planning with Life Insurance

Having any type of final expense insurance is not difficult. In fact, it is often easier than your average life insurance because it can be issues as a no medical exam life insurance policy. These policies are exactly what they sound like, you’ll be able to get the insurance coverage that you need, regardless of your health or any pre-existing medical conditions. This can help you to insure your estate without issue so that whoever is receiving it is not stuck with massive bills that chip away at the overall amount. The ease of getting it also makes it easier on you, obviously. While other types of insurances have stresses and because you to go through several steps to finally be insured, this makes it easier. When going for this type of insurance, it is possible to get it and get out without becoming stressed, worried, or bothered by what must be done.

With the importance of your estate, it is necessary to ensure it goes to your chosen heir in a complete amount. Having 2nd to die life insurance is the option to keep your estate at full value and help your heir get it without spending large sums of money.  It’s always best to meet with a trusted estate planning attorney to see if you are in need of 2nd to die life insurance policy. There are a lot of different factors that you have to consider when deciding if you need a 2nd to fie life insurance policy or a traditional plan. An estate planning attorney can help walk you through the process and make the best decision for you and your family.

The Advantages and Disadvantages of 2nd to Die Life Insurance

Because there are so many different life insurance options, it’s important to understand the pros and cons of each option. Life insurance is one of the most vital purchases that you can make for you and your family, you should make well informed and educated decisions. Not having the right type of policy, or not having a policy at all, is one of the worst mistakes that you can make. It could leave your loved ones with a mountain of debt and no way to pay for it. That’s not the inheritance that most people want to leave behind after they pass away.

One of the advantages to these 2nd of die life insurance policies is the standards that most companies used to issue them. If you go with a plan that uses medical underwriting, it’s going to be very different from a traditional term life insurance policy, because it’s based on the health of two people instead of just one. This means that even if one person doesn’t have perfect health, you’ll still be able to get coverage as long as the other person is in good health. For anyone with any serious health complications or any pre-existing conditions, this can be extremely beneficial.

Another major advantage to these policies is the monthly premiums. In most cases, a 2nd to die life insurance policy is going to be cheaper than buying two separate policies for each person. These plans will give you life insurance coverage for less expensive monthly payments.

Just like other life insurance plans, there are disadvantages to these policies. The biggest disadvantage is obvious, you won’t receive any payment for the loss of your spouse. When the first person dies, the surviving spouse will be left with all of the funeral expenses, medical bills, unpaid debts, and much more, but they won’t receive any funds from the life insurance policy. For a grieving spouse, it can be difficult to pay for all of these expenses.

This is where a traditional policy is an excellent tool. One alternative to the 2nd to die life insurance is purchasing a traditional term life insurance policy for both you and your spouse. These policies only cover one party instead of two. In most cases, a term policy is much less expensive than most applicants think. Aside from how affordable they are, it’s also much more beneficial when your spouse dies, it will leave you with the money you need to pay off any debts or pay for any funeral expenses.

Just like with most other policies, you can always go with a no medical exam term life insurance plan. They are easy to apply for, and you can get insurance coverage quickly. In some cases, it can be as quick as a couple of days.

Getting Life Insurance

It’s easy to see why everyone should have a quality life insurance policy, but getting an affordable plan can be a long and stressful process. There are hundreds of companies that offer dozens of different insurance products, how are you supposed to decide which one is best for you? You could spend hours on the phone calling insurance companies or researching companies online, or you can let us do all of the hard work for you.

One of the best ways to ensure that you’re getting the best rate for your policy is to compare different companies, but who wants to spend that time answering the same questions with different companies? Instead, let us bring all of the lowest quotes to you. Fill out the quote form on the side and we can start helping you on the life insurance process. We don’t work for any one agency, which means we aren’t going to sell you any low-quality insurance or try and sell you additional coverage that you don’t need.

Aside from helping you find the perfect plan to fit your needs, we can also answer any questions that you have about 2nd to die life insurance, term life insurance, or any other policies.

 

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