A second-to-die life insurance policy, also known as a survivor life insurance policy, is a type of life insurance that pays out a death benefit upon the death of the second insured person. A common example is a policy purchased by a married couple, in which the policy pays out upon the death of the surviving spouse.
These policies are designed to provide financial protection to beneficiaries who may rely on the income of both insured individuals. They can be beneficial for estate planning, ensuring that there are sufficient funds to cover estate taxes or other expenses upon the death of both spouses.