Survivorship Universal Life Insurance

This Life Insurance Lets You Leave Money to Your Partner

Couple considering life insurance

If you need an affordable way to leave money for others after you and your partner pass away, survivorship universal life insurance might be an option for you.

What is it?

Survivorship universal life insurance is often referred to as second-to-die insurance it insures two people but doesn't pay beneficiaries until both policyholders have passed away.

It offers a death benefit upon the death of the second insured and cash accumulation, which can provide a source of funds if needed.

How is it used?

While most life insurance policies are intended to provide for a widowed spouse, a survivorship policy also helps with:

  • Estate planning. Death benefits will typically pass income tax-free to heirs, which can help in funding mandatory federal estate taxes.
  • Business transition planning. Survivorship policies can provide the funds needed to pass down a family business, while also providing cash value for uninvolved heirs. The policy also can help finance a buy-sell agreement between two business partners.
  • Charitable giving. You can donate money to causes you care about long after your death.
  • Supporting a disabled child. Couples who support a disabled adult child often set up a Special Needs Trust with a survivorship policy to ensure their child continues to receive care.

What are the benefits?

Survivorship universal life insurance policies typically offer a few perks, including:

  • Premiums that are typically lower than two individual policies
  • Accumulating cash value
  • Ability to add additional riders

Visit the State Farm® site to learn more about universal life insurance policies.


Because insurance protection is a contract, any coverage descriptions in this article are general only and are not statements of contract. All coverages are subject to all policy provisions, including applicable endorsements.