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What is Survivorship Life Insurance?

By Cameron Goodwin·February 23, 2023·5 Minute Read

What is Survivorship Life Insurance?

Some insurers offer survivorship life insurance as a term policy, but it is more commonly purchased as permanent life insurance. Survivorship life insurance is a type of life insurance that covers two people with one death benefit.

When you apply for a survivorship life insurance policy, you and your partner will both go through the underwriting process.

The underwriter at your insurance company will review your application and investigate each person’s health status, medical records, lifestyle, and connection to one another. If approved, you and your co-applicant can purchase a survivorship life insurance policy, choose a coverage amount, and name your beneficiaries.

How Does a Survivorship Life Insurance Policy Work?

Survivorship life insurance is also called second-to-die life insurance because the death benefit is paid out only after both policyholders have passed away.

No insurance benefit is paid out when the first person dies on a survivorship life insurance policy. Instead, the policy stays in force as long as the surviving insured continues to make premium payments.

When the second insured dies, the death benefit then goes to the policy’s named beneficiaries.

What is First-to-die life insurance?

Most people purchase life insurance to help provide a little financial protection for their loved ones. Since the death benefit of a survivorship life insurance policy is not paid out when the first insured dies, it may not be the right fit for some people.

Like survivorship life insurance, first-to-die life insurance is typically sold as a permanent joint policy. As the name alludes, a first-to-die policy pays out the death benefit when the first of the two insured passes away.

Is Survivorship Life Insurance the Right Type of Life Insurance for You?

Survivorship life insurance might be a good option for you if you:

Want to leave a legacy donation: You can name an entity as your life insurance beneficiary. When both of you have passed, the death benefit of your survivorship policy would then go to your selected charitable organization.
Have a permanent dependent: Some children need lifelong care. While a surviving parent may be able to take care of an adult dependent solo, what happens when both parents pass away? The death benefit of a survivorship policy could be used to pay for the special care your child may need when you are gone.
Want to leave something behind for your heirs: When you and your spouse or domestic partner are gone, you can leave a little financial benefit for your loved ones. In most cases, the death benefit on a life insurance policy is tax-free for those who receive it.
Are looking for a joint policy with living benefits: Some survivorship life insurance policies feature a cash value component. Though the death benefit on your survivorship policy is not available until both insured dies, you may be able to build cash value on your policy over time.

Accrued cash value on a life insurance policy can be used to pay the policy’s premium, make withdrawals, or take out a life insurance loan.

Survivorship Life Insurance Costs

One joint survivorship life insurance policy is generally going to be less expensive than purchasing two separate permanent life insurance policies.

With a survivorship policy, you’re paying for one death benefit to cover two people, so it makes sense that it would cost less than two individual permanent policies, each with its own death benefit.

Is Survivorship Life Insurance Worth It?

The worthiness of a product is subjective. If you’re considering survivorship life insurance but unsure if it’s the right choice for you and your loved ones, you might want to ping your insurance agent and see what they think is the best option for your particular situation.

Survivorship life insurance isn’t a commonly purchased type of life insurance, likely because it leaves the surviving insured without any financial benefit when the first insured passes away. For most people, that doesn’t make sense because they are likely concerned about the loss of income their death could cause a partner and their dependents.

Alternatives to Buying a Survivorship Life Insurance Policy

A survivorship life insurance policy could be a good fit for couples who aren’t looking for a financial safety net for the surviving partner, but if you are specifically considering life insurance to provide a death benefit to your partner when you die, you might want to explore these alternative types of life insurance:

First-to-die Joint Life Insurance: As previously mentioned, this type of life insurance policy also covers two people with one death benefit. The death benefit on a first-to-die policy is paid out when the first insured passes away.
Whole Life Insurance: Whole life is individual permanent life insurance that offers a death benefit and an opportunity to build cash value on the policy while you are alive. The death benefit on whole life policies is paid out to your beneficiaries when you pass away.
Term Life Insurance: Term life insurance offers straightforward coverage for a period of time, typically ten to thirty years. Once a term life insurance policy is approved, you can select your term, coverage amount, and beneficiaries. If you die with the policy in force, your beneficiaries receive the policy’s death benefit.

Because term life insurance policies have an expiration date and do not build cash value, they are less expensive than permanent life insurance policies of the same coverage amount.

Bestow Makes Term Life Insurance Easy

You likely came here to learn about survivorship life insurance but if you’re curious about term life insurance, check this out: with Bestow, you can apply for no-medical exam term life insurance online right from your laptop or phone.

No medical exam, no lab tests, and no excruciatingly long waiting period. Instead, you fill out an application, answer a few pages of health and lifestyle questions, click submit, and boom, you just applied for term life insurance.

Rates start from just $10 per month. Start with an instant quote and, if approved, purchase your policy to lock in your premium for the entirety of your policy’s term.

Key Takeaways

Survivorship life insurance is a type of joint life insurance policy covering two people with one death benefit.

Sometimes referred to as second-to-die life insurance, survivorship life insurance provides a death benefit to beneficiaries when the second insured passes away.

Though it is not a commonly purchased type of life insurance, a survivorship life insurance policy might be a viable option if you and your partner are looking to leave behind a legacy donation or inheritance.

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Author: Bestow Team, reading time: 5 minutes
Top Questions About Bestow Answered
Life insurance is confusing. We get it. With so many options out there, it’s hard to figure out where to even start. Chances are that if you’re reading this, you have questions, too.
Fortunately, you don’t have to do this alone. Every day we answer phone calls, chat messages, and emails from customers who want to buy life insurance coverage but don’t know the best way to go about it. There’s no shame in that. There’s a reason why insurance agents and brokers need to have a license to sell policies to customers — it’s a complicated topic!
Oftentimes, we hear this: “I don’t know what questions to ask.”
If that’s you, then you’re in the right place! Here, you’ll find the top questions people just like you are asking.
What Kind of Life Insurance Does Bestow Offer?
Bestow offers term life insurance. A term life policy is as easy as 1-2-3.
1. Choose a term (between 10 and 30 years, in 5-year increments),
2. Select a coverage amount ($50,000-$1.5 Million), and
3. If approved, pay a set monthly premium throughout the duration of that term.
Policies offered by Bestow have level premiums, which means your monthly premium will never change, as long as your policy is in force — no matter your term length. Lock in your rate today!
How Do I Know I’m a Good Fit for a Policy Offered by Bestow?
If you’re in generally good health and between the ages of 18 and 60, a policy offered by Bestow might be a great fit for you. Our application provides an underwriting decision instantly, so you don’t have to wait weeks to find out whether you’re approved for coverage.
What Is the Application Process Like with Bestow?
Bestow’s 100% online application process has four simple parts:
1. Your basic identifying information: email, address, and Social Security Number.
2. Your life. This includes citizenship, medical history, lifestyle, and hobbies.
3. Beneficiaries. This is whoever would receive the death benefit in the event of the insured’s death.
4. Policy and payment details. If approved, choose the coverage amount and term length, then enter credit card info to purchase and bind the policy.
It’s as easy as that! In as little as 5 minutes, you could be the proud owner of a new life insurance policy.
Is a Medical Exam Required to Get a Policy Offered by Bestow?
Not with Bestow. A medical exam helps an insurance company double check how healthy you are. Instead, Bestow’s underwriting engine checks your health with big data and technology, which saves you time and money. We’ve partnered with third-party agencies to gather information in order to assess your risk and eligibility for a life insurance policy — instead of paperwork, medical exams, and lab tests. Here’s a detailed explanation of how Bestow works.
How Is Bestow Different Than Other Insurance Companies?
Bestow’s application process is entirely online. Seriously, 100%. Many companies offer an indicative quote online, but then refer applicants to an agent in order to finish the application process. Other online life insurance options may still require a medical exam for certain coverage amounts or applicants.
We’ve completely re-engineered the application experience for term life insurance to be super simple and more affordable. Apply and get an instant decision in as little as 5 minutes. Unlike some other online life insurance providers, we underwrite the policies we offer in-house with our own technology — accelerated underwriting. Our data and technology allows us to help our customers with just about any request.
What is Accelerated Underwriting?
Think of this accelerated, algorithmic underwriting as our secret sauce. We use that big data and our proprietary technology mentioned above to determine your risk and eligibility instantly.
What Determines How Much I’ll Pay For Life Insurance?
Your level of risk is what determines your premium and monthly rate. Risk is the likelihood that an insured event (in this case, death) should occur during the policy term. The higher your risk, the more you will likely pay.
Life insurance risk factors include basic information about you (like your age, height, and weight) in addition to things like your medical history and lifestyle. But each insurance company has their own underwriting process — that’s the process by which an insurance company determines whether it can accept the risk of an applicant for life insurance, and if so, on what basis so that the proper premium is charged. Here’s more information on life insurance risk and underwriting.
What Is the 30-Day Money-Back Guarantee?
It’s a 30-day free look period to examine your life insurance policy to see if it meets your needs. If you cancel your policy within the first 30 days, you’ll receive a refund.
How Can I Trust You? You’re a Startup.
Our policies are issued and backed by A+ rated (superior) industry giant North American Company for Life and Health Insurance®. They’ve been around for over 100 years. If anything were to happen to Bestow, your policy is well taken care of. But don’t worry, we aren’t going anywhere.
How Can I Trust My Beneficiary Will Get Paid?
North American Company for Life and Health Insurance® is the insurance carrier and pays the claim for policies purchased through Bestow. We are here to walk whoever is making the claim through the process and answer any questions.
What Happens If I Die During My Term?
Should you pass away, your beneficiary will contact Bestow to get started on the claims process. A Customer Care Advisor will walk them through the process and answer any questions while North American Company for Life and Health Insurance® processes and reviews the claim.
In most cases, life insurance policies will have a two-year contestable period where the insurance company may investigate the cause of death and review the information provided on the application (only if there’s a reason). If information is found to be false or inaccurate, the insurance company can deny the payment of the life insurance benefit.
Additionally, Bestow has partnered with Empathy to help you support your loved ones in all the ways that matter. We teamed up to give your beneficiaries (up to 10 loved ones) access to digital support tools to help them in the toughest times. From logistical tools like helping navigate probate and settling an estate to emotional tools like grief resources and meditation exercises, Empathy provides 24/7 digital access for your beneficiaries to navigate life after loss.
Empathy is a platform made free for the beneficiaries of the policyholders with Bestow. Empathy is available to policies issued in the following states: AL, AR, CA, FL, GA, ID, IN, IA, KS, ME, MS, NE, NV, NH, NM, ND, OH, OR, VT & WV. Empathy offerings are not guaranteed to continue. We reserve the right to elect, designate, replace, or terminate Empathy services at any time. Empathy is a non-affiliated 3rd Party platform.
What Happens If I Don’t Die?
Cheers to good health!
Term life insurance policies do not build cash value like a whole life policy does, so if you outlive your policy term, you won’t get anything back. Term life policies do not renew. At the end of your term, you can re-apply for a new policy.
What If I Still Have Questions?
No worries. We’ve got your back. You can contact our Customer Care Team in three different ways:
1. Give us a call at 1.833.300.0603
2. Ask us a question via chat — that little box floating about the page.
3. Send us an email at [email protected], and a Customer Care Advisor will get back to you. Please do not include personal information, like your Social Security Number.
Or if you prefer a DIY approach, you can check out our Bestow FAQ.
There’s no such thing as a silly question, so don’t hesitate to reach out. We’re happy to help.
Ready to get a quote? Apply for up to $1.5 million in term life coverage with Bestow.

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Author: Bestow Team, reading time: 4 minutes
No Medical Exam Life Insurance: What to Know
Between work, home repairs, and a to-do list that never seems to shrink, it can feel like there is no time for extras. It’s safe to assume that most people would prefer not to take hours out of their day to get a life insurance medical exam. If this is the case, then why do most insurance companies require it?
The life insurance industry is not just old, it’s centuries old. In fact, the first life insurance policies in the U.S. were written in the 18th century. Obviously, we didn’t have the technology then (or even just a few years ago) that we do now, so medical exams have been a necessary step in the underwriting process. But times have changed, technology included. Is it still necessary to undergo a medical exam to buy life insurance? For some, the answer is yes, and for others, no. As a consumer, you have options.
What is No-Medical-Exam Life Insurance?
No-medical exam life insurance is exactly what it sounds like: a life insurance policy that does not require a medical exam to apply.
The traditional way of applying for a life insurance policy can involve medical exams, lab tests, and in-person interviews. With this traditional underwriting process, you might find yourself waiting up to a month to get a decision.
Accelerated underwriting uses technology to make the process of applying for life insurance more efficient. As in, an application decision and knowing if you are eligible in minutes – not weeks. Pretty cool right?
As with all types of life insurance coverage, whether or not a policy is a right fit for your needs depends on, well, your needs. Some may have higher premiums, some may have differences in the application process. There are a lot of options. Here, we’ve gathered some helpful info on some of the most common life insurance coverage options which may not require a medical exam.
What Are the Different Types of No Medical Exam Life Insurance Policies?
Term life insurance can be a solid choice for many families because of its simplicity and affordability, but there are a few other types of no medical exam life insurance options, as well.
No-Medical Exam Term Life Insurance With a Fast Decision
With this option, instead of bloodwork and a medical exam, applicants will answer health and lifestyle questions and provide information about their medical history to see if they qualify for a policy.
Simplified Issue Term Life Insurance
In some ways, simplified issue is similar to the above. There’s no medical exam, and you’ll instead provide information about your lifestyle and general health, including disclosing any medical conditions you may have. It’s an option worth considering if you’re generally in good health and looking for fast coverage.
One key difference, though, is just how much life insurance coverage you can get. Simplified issue insurance typically caps off around $100,000 (although some life insurance providers do offer more coverage). Plus, a simplified issue policy may have graded death benefits, which means that your beneficiaries only get the full value of the policy if you pass away at least two years after you purchase.
Because there are minimal questions and quick coverage, the cost for simplified issue policies will typically be more expensive than both no-medical exam or traditionally underwritten life insurance.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is a kind of whole life insurance policy (a type of permanent life insurance) that doesn’t require any health qualifications. There are no medical exams or health questionnaires. The coverage amount is quite limited though – usually between $2,000 and $25,000 – typically enough to serve as final expense insurance.
Guaranteed issue coverage is typically purchased by people who can’t qualify for any other type of life insurance. If you are approved for guaranteed life insurance, your policy will likely have a waiting period before your benefits go into effect, typically two or three years. You would pay your premiums during this time but if you were to pass away during the waiting period, your beneficiaries would not receive the death benefit.
Group Life Insurance
Your employer may offer group life insurance with a coverage amount equal to your salary. This coverage is generally inexpensive or free and there’s usually no medical exam. It’s a nice perk if you can get it, though it’s important to remember that you usually can’t take your coverage with you when you leave the company.
Moreover, some people find that a simple one-time salary replacement is not an adequate amount of coverage. You may be able to purchase extra coverage through your employer, but consider getting a quote for a term policy before you do. You may be surprised at how much coverage you can get for the same price.
Who Can Buy Life Insurance Without a Medical Exam?
Generally speaking, healthy adults between the ages of twenty-one and forty-five may be eligible to buy a term life insurance policy online. (Bestow can underwrite policies for individuals ages eighteen to sixty, for terms of ten to thirty years, if approved.)
No one will vet your yoga class attendance record or that marathon sticker on your Subaru’s rear window. But if you are in overall good health, a no-medical-exam life insurance policy might be the right fit for you.
However, there are certain criteria that may prevent you from purchasing a policy without a medical exam. If you have a serious medical condition (such as heart disease, cancer, kidney disease, or blood pressure issues) or risky hobbies (like hang gliding, for example), you might need to speak to a licensed insurance agent to help you find a life insurance policy that fits your needs.
How To Get a Fast, Free Quote Right Now
Bestow offers term life insurance for today’s busy families. We believe that everyone should have access to the financial protection that life insurance can help provide, and that it should be convenient, affordable, and fast.
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Author: Bestow Team, reading time: 4 minutes
Who Needs Life Insurance – How It Works, and When You Should Have It
In the event you’re not around to provide for your family members, the death benefit from a life insurance policy may leave your loved ones with some degree of financial security. And for a lot of people, especially parents, that peace of mind is priceless.
You’ll have plenty of options when selecting life insurance from different face values and term lengths to riders and even policies that hold cash value. At the end of the day, the choice is personal, but knowing about all of your options can give you more confidence to finally purchase that policy.
How Life Insurance Works
In short, you pay a life insurance company a set amount of money each month (that’s the premium) for an agreed upon amount of time (that’s the term). If you pass away during that term, the insurer pays your beneficiary (the person you choose to receive the benefit) the life insurance payout.
The payout is typically tax free, and many view it as income replacement. Others plan for it to cover daily living expenses, a mortgage, or even fund higher education. You can name nearly anyone as your life insurance beneficiary and they can spend the money however they need it.
It really can be that simple. You continue to pay your insurance premiums on time each month, and you can feel good about the financial protection you are providing your family should they ever need it.
Start with a quote
Who Needs Life Insurance?
Most people start to think about life insurance when they start a family or buy a home, but the truth is, it’s always a smart time to start buying life insurance. That’s because, typically, the most affordable time to buy is now. For most people, life insurance rates get more expensive as you age.
Anyone with someone who depends on their income is a good candidate for life insurance.
1. Parents
Having kids means having bills, from early childcare costs for young children to higher education for older kids. Their financial needs are unpredictable and often come by surprise.
2. Spouses or Partners
From living expenses to outstanding debts and even private student loans, the loss of a loved one could be compounded by crushing financial burden. That’s to say nothing of the funeral expenses and other final expenses that face those left behind.
3. Stay at Home Parents
Stay at home moms and dads contribute a significant amount of non-paid labor in a home. While not typically viewed as financial support, the value of this work can easily be in the six-figures. Life insurance can help to cover the costs associated with childcare, home maintenance and more.
4. Small Business Owners
The terms of a small business loan often require life insurance, but having coverage can also solidify a commitment to employees, business partners, and small business cosigners, whose livelihoods may depend on your contribution to the company.
5. Retirees
Even if you were offered life insurance through work, that typically vanishes when you leave a job. Many retirees live on a fixed income and when a spouse or partner passes, a life insurance policy can ensure the other lives out their days comfortably.
6. Anyone with Shared Debts
If you and your spouse’s names are both on the mortgage, if your parents cosigned your student loans, or if you share a credit card, you may be leaving loved ones responsible for debt they aren’t able to pay off.
Watch this video to learn more about who might need life insurance.
Who doesn’t need life insurance?
If no one in your life depends on you for any financial support, you may not need life insurance coverage right now. But there’s no harm in looking at life insurance quotes today.
If you work with a personal finance advisor, it’s likely they’ll bring up life insurance while you are young, if they think you may need life insurance in the future. That’s because, in most cases, life insurance will never be as affordable as it is today. Yup. Right now. Your premium rate is determined by a number of factors including your age and health, often with a medical exam. The rate you get at 25 will probably differ significantly from the rate you get at 35.
What Kind Of Life Insurance Is Best For You?
Once you’ve got an idea of the amount of life insurance you need, you’ll need to understand which type to buy. There are several types of life insurance coverage with differing amounts of coverage, policy lengths, and even add-ons. Let’s break it down.
Whole Life Insurance
Whole life insurance (or permanent life insurance) is a policy you purchase and pay premiums on for the rest of your life. When you pass, as we all do, your beneficiaries receive a payout.
A whole life insurance policy might be right for someone hoping to transfer wealth to their children. Or people who expect to have mortgages into old age. It is almost always more expensive than a term policy because it, at some point, will pay out.
Read more about the differences between term and whole life insurance here.
Term Life Insurance
Term life insurance policy is a great choice for people looking for more affordable rates and happy to have coverage for a set number of years (like 5, 10, or even up to 30).
You can usually find out a more flexible policy with competitive rates for the years when your death would most impact your family (duration of a mortgage, children graduating, etc.)
Watch the video below to learn more about how much insurance you need.
Buying Your Life Insurance Policy
Whether you’re looking to shore up your long-term financial plan or you’d just rest a little easier knowing you’ve done something that may help your family, life insurance is now a relatively easy place to start. With Bestow, you can get a fast, free quote in seconds. The full online application literally takes minutes, and you could have coverage today, if approved. Peace of mind could be just a few clicks today. So what are you waiting for? Get started today.

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