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What is survivorship universal life insurance?

Survivorship Universal Life Insurance provides money for others after you and your partner pass away.

Couple considering life insurance

Is survivorship universal life insurance right for my family?

You’ve worked hard to take care of your family and build your estate. You plan to pass your money down to your loved ones or your favorite charity and make a difference in their lives.

If you need an affordable option to help protect and grow your legacy after you and your partner pass away, survivorship universal life insurance might be an option for you. Also known as a survivorship life policy or family survivor life insurance, the benefits include charitable giving, supporting a disabled child, business transition planning, and the possibility to help pay federal estate taxes and other estate-settlement costs owed after both spouses pass away.

What is survivorship universal life insurance?

Survivorship universal life insurance is often referred to as second-to-die insurance. It covers two people and pays a benefit only after both covered individuals have passed away. Since it costs less than two individual permanent policies, it's an affordable option to leave a larger nest egg for your heirs or favorite cause.

How is survivorship universal life insurance used?

The survivorship universal life policy can help with:

  • 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.
  • 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 fund a buy-sell agreement since the proceeds are paid on the first death.
  • Estate planning. Death benefits will typically pass income tax-free to heirs, which can help in funding mandatory federal estate taxes.

What are the benefits of survivorship universal life insurance?

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

  • Typically less expensive than buying two individual policies. Since one Survivorship Universal Life policy covers two people it generally costs less than two separate policies.
  • Builds cash value. When you pay your premium a portion covers the cost of life insurance and the remainder is applied to a cash value account. The growth in cash value is federal tax-deferred and can be accessed for a variety of personal needs, but withdrawals can have consequences1.
  • Ability to customize your policy with available riders, which can help customize coverage for your particular situation.

Visit the State Farm® site to learn more about universal life insurance policies and contact a State Farm agent with any questions.

1 Unpaid loans and withdrawals will reduce the guaranteed death benefit and policy cash value. Loans also accrue interest.

Neither State Farm® nor its agents provide tax or legal advice.

Accumulated cash value is available through policy loans or withdrawals which may affect the cash value and death benefit.

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