Define: Last-Survivor Life Insurance

Last-Survivor Life Insurance, also known as second-to-die insurance, is a type of life insurance policy that covers two individuals and pays out the death benefit only after both insured parties have passed away.

Last-Survivor Life Insurance is commonly purchased by married couples or business partners who want to ensure financial security for their beneficiaries after both individuals have passed away.

Unlike traditional life insurance policies that pay out upon the death of a single insured individual, Last-Survivor Life Insurance pays the death benefit only after both insured parties have died. This can be beneficial for estate planning purposes or to cover estate taxes.

Yes, the death benefit from Last-Survivor Life Insurance can be used for any purpose, such as paying off debts, covering funeral expenses, or providing financial support to beneficiaries.

Yes, Last-Survivor Life Insurance policies can typically be canceled or surrendered before both insured parties pass away. However, it is important to review the terms and conditions of the specific policy as there may be penalties or fees associated with early termination.

In most cases, Last-Survivor Life Insurance policies cannot be transferred to another individual. However, it is advisable to consult with the insurance provider to understand the options available.

Modifications or adjustments to Last-Survivor Life Insurance policies are generally not allowed once the policy is in force. However, it is recommended to review the policy terms and conditions to understand any provisions for changes or adjustments.

Premiums paid for Last-Survivor Life Insurance policies are generally not tax-deductible. However, it is advisable to consult with a tax professional to understand the specific tax implications based on individual circumstances.

The death benefit from Last-Survivor Life Insurance can be contested under certain circumstances, such as fraud or misrepresentation during the application process. It is important to review the policy terms and conditions to understand the contestability period and any potential grounds for contesting the benefit.

Determining the appropriate coverage amount for Last-Survivor Life Insurance depends on various factors, including financial obligations, estate planning goals, and the needs of the beneficiaries. It is recommended to consult with a financial advisor or insurance professional to assess the specific requirements and determine an appropriate coverage amount.