“First-to-Die” Life Insurance Now Available

Business Succession

Second-to-die life insurance has long been used by married couples to provide liquidity to pay estate taxes at the death of the second spouse to die.  Such insurance is less expensive and easier to obtain than two separate policies on the same individuals.

Now, life insurance that pays out at the first death is available. The Phoenix Companies, Inc., of Hartford, Connecticut, has released its Phoenix Joint Advantage universal life policy.  A single policy will insure two lives, covering couples who need cash for support when the first of them dies, and small business owners who need funds to purchase a deceased owner’s interest.
The product has several options, such as a survivor purchase rider, which enables the survivor to purchase a new policy without undergoing further underwriting.
Given the usefulness of this type of policy for estate and business planning, I predict other companies will follow suit.
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