Joint, Last to Die Protection
A useful estate planning tool for couples is Joint, Last-to-Die coverage. On death, most of a person's assets may be transferred, tax-free, to their spouse. Any tax-consequences are deferred until the death of the surviving spouse. Joint, Last-to-Die coverage pays a death benefit on the death of the second spouse, when the tax liability usually occurs.
An adjusted rate is determined based on the age, gender, and smoking status of the two insured lives. As this coverage only pays one benefit, on the second death, premiums may be considerably lower than purchasing individual coverage on both lives. Your CBIA Authorized Representative can help you determine if this coverage is right for your situation.