Joint Last-to-Die Life Insurance for Estate Planning

August 15th, 2011 | Author: Mitch Reynolds

Joint Last-to-Die Life Insurance

Protect your Estate with Joint Last-to-Die Life Insurance

Special video presentation of Joint Last-to-Die Life Insurance from PPI Solutions

Even though joint last-to-die life insurance is not very well known by Canadians, there are greater benefits to married couples looking to build more estate value.

Joint Last-to-Die Life Insurance is based upon the life of two people, often husband and wife. It pays out a tax free death benefit when the last person has died – not the first person. Because benefits are paid only upon the second death, the cost of this type of insurance is much lower than single life insurance coverage.

Example of premiums for a Joint Last-to-Die Life Insurance policy

If you had a 50 year old couple looking for $250,000 of life insurance for their estate planning they could buy a single life insurance policy each or on either one of them. Here is how the premiums would break down between these 3 options:

Single Life Insurance, Male age 50: $2,812
Single Life Insurance, Female age 50: $2,153
Joint Last-to-Die Life Insurance: $1,348

Savings of up to 53% off the cost of life insurance when using a joint last-to-die life insurance policy.

Joint last-to-die life insurance is an ideal product for your financial planning needs that are focused on estate planning.

What NOT to do with Joint Last-to-Die Life Insurance

Do not try and use joint last-to-die life insurance as an income replacement tool in case on partner was to pass away early. Because benefits are not paid out until the last death this type of life insurance is not appropriate for things like:

Income replacement
Paying off debts
Providing funding for children’s education

How a Joint Last-to-Die Life Insurance policy can be used

If you own assets that will be taxable upon death then a joint last-to-die life insurance policy can be useful. Within the Tax Act of Canada there is an important provision called the spousal roll-over clause. This allows assets to roll-over to the surviving spouse with no tax consequences. However, upon the death of the last spouse, all taxes owing on these assets will become due.

Assets like RRSPs, shares in private or publicly trade companies, or a revenue or recreational property will all have capital gains taxes or income taxes owing on them upon the last death of a couple. Joint last-to-die life insurance allows you to use some very powerful estate planning strategies to protect against these taxes and other estate planning needs, like:

Please take five minutes to watch the video on joint last-to-die life insurance to better understand this product and how it might be right for you.

If you would like more information on joint last-to-die life insurance please feel free to contact Life Guard Insurance.

The article was written by Mitch Reynolds+. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about joint last-to-die life insurance would also be very much appreciated.