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Everything old is new again

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Pretty much everyone’s heard of universal, whole and term life. These are usually bought to replace income that would be lost at one’s death, or to pay off the mortgage, those kinds of things. And they generally cover one person at a time (although one can buy spouse and children’s riders, these usually come with an expiration date).

When the estate tax was a big deal, one often saw Second-to-Die plans that covered a couple; the plan paid off at the death of the remaining spouse, when the (bulk of) the estate tax was due.

What I haven’t seen in a while are First-to-Die plans. As the name basically states, these plans insure two (perhaps more) lives and pays off at the first death. They can be handy for buy-sell agreements, or if a couple has a specific need for one. They’re also budget-friendly, in that your insuring two folks for a little bit more than one. They can also be helpful savings vehicles for college funds and the like.

Nothing really ground-breaking, of course, just interesting to see a resurgence.

[Hat Tip: Donna S]

Original content copyright © InsureBlog


Source: http://insureblog.blogspot.com/2017/01/everything-old-is-new-again.html



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