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Survivorship Life
Insurance
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| What
is it? |
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Survivorship Life is a second-to-die life insurance policy. (USLIP)
Second-to-die coverage is for two persons (usually husband and
wife). The death benefit of a second-to-die policy is not payable
until both people covered by the policy die.
Second-to-die coverage is used primarily in estate planning.
It protects children and other heirs from the burden of estate
taxes, which often become due and payable nine months after the
date of the second insured's death.
Tax advisers and estate planners routinely recommend second-to-die
coverage as a way to pay estate taxes and other costs associated
with settling a large estate.
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Interest sensitivity and cash value build-up |
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Premiums paid into your Survivorship Life policy
will earn interest at a competitive rate, guaranteed never to be
less than 3%. Your policy can develop available cash value, which
can be used by you for other purposes, if needed.
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| Premium
flexibility |
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Subject to the initial minimum premium requirements described
in the policy, you can pay whatever premium you wish. Any premium
you pay over and above the minimum can result in an even larger
build-up of the policy's cash value, or enable you to reduce future
premiums.
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| Disability
of premium waiver |
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This rider to your Survivorship Life policy can waive the policy's
monthly deduction in the event of disability. It can cover one or
both insureds. (USLIPDW)
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| Coverage
flexibility |
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The amount of protection in your Survivorship Life policy can be
increased at any time, subject to the insurability of the two insureds.
Additional premium may or may not be necessary. A reduction in the
policy's amount of coverage can occur, once the policy develops
a positive surrender value.
Proceeds from a life insurance policy paid because of death of
the insured are generally excludable from the beneficiary's gross
income for tax purposes.
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| Riders |
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Automatic Increase Rider. Your estate is likely to grow
in value. When it does, your need for additional coverage will
grow as well. By including the Automatic Increase Rider with your
policy, your coverage can automatically increase every year and
eventually grow to as much as twice the original amount of coverage.
(Form USAIR)
Contemplation of Death Rider. Maybe your estate plans
are not complete, but you're in the process of finalizing them.
This special optional rider enables you to get the necessary coverage
in place now, including some important additional temporary
protection. (Form USLIPCD)
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Proceeds from
an insurance policy paid because of the death of an insured are
generally excludable from the beneficiary's gross income for tax
purposes. (IRC Sec. 101(a)(1).)
Income and growth
on accumulated cash values have been held by the Tax Court to be
generally taxable only upon withdrawal. (IRC Sec. 72.). Consult
your tax adivser or attorney on your specific situation.
Policy death
proceeds can be arranged to be tax-free (IRC Sect. 2042)
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American National
Insurance Company, Galveston, TX
American National Property and Casualty Companies, Springfield,
MO
Products
and services not available in all states
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