Goshert Financial

 

Type of Coverage.

 

First-to-Die.

The Standard insurance policy that pays out the death benefit at the death of the one insured person.  Surviving spouse uses proceeds to retire mortgage, put children through college and/or provide replacement income to family.                               

 

Second-to-Die. 

Married couple takes out this joint policy to pass death benefits to children/grandchildren at the death of the second spouse.  Depending on relative ages and health issues, the second-to-die policies are generally less costly than for two first-to-die policies taken out by each spouse.  This is because the actuarial assumptions are more favorable to the insurance company.  Second-to-die policies are advantageous to the married couple when the surviving spouse is no longer concerned about retiring a mortgage, or educating the children, or replacing lost income.