What is survivorship life insurance commonly referred to as?

Survivorship life insurance is commonly referred to as second-to-die insurance. This type of policy covers two lives, typically spouses, and pays out a death benefit only after both insured individuals have passed away. It is often used in estate planning as a way to provide funds to cover estate taxes or to leave a legacy for heirs.

The term "second-to-die" is key as it differentiates this insurance from other life insurance products, such as first-to-die insurance (which pays upon the death of the first insured), emphasizing its unique function of supporting financial planning strategies that anticipate the eventual passing of both individuals. This makes it a popular choice for couples looking to ensure that their heirs are cared for financially, while also managing tax implications that may arise from their estate.