Survivorship Life Insurance

What is it?

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.

What features does Survivorship Life offer?

Interest sensitivity and cash value build-up

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.

Premium flexibility

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.

Disability waiver of monthly premium

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. (This requires additional premium) (USLIPDW)

Coverage flexibility

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.

Why buy American National's Survivorship Life?

The Additional Insurance (AI) Rider

Your estate is likely to grow in value. When it does, your need for additional coverage will grow as well. By including the Additional Insurance Rider with your policy, your coverage can automatically increase every year and eventually grow to as much as twice the original amount of coverage. (This requires additional premium) (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. (This requires additional premium) (Form USLIPCD)

Survivorship Life From American National

• Pays the beneficiary directly and immediately, without the inconvenience of passing through the probate process.
• Pays estate taxes, which are often due and payable in cash nine months after the date of death.
• Provides the dollars needed to keep a business going during a critical ownership transition period.

Tax Notes: Proceeds from an insurance policy paid because of the death of the 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.).

Policy death proceeds can be arranged to be tax-free. IRC Sect. 2042

State Specific Information: A two-year suicide provision is included in policies (one year in Colorado and North Dakota). If a policyholder commits suicide during the first two policy years, only a refund of premiums will be made. Missouri requires coverage for acts of suicide, unless it can be proven that the insured intended suicide at the time the application was completed.

The foregoing is neither a contract nor an offer to contract, but is a general description of benefits available under a policy providing the benefits outlined. The policy does have limitations. For costs and complete details of coverage, call or write your local agent or American National.

Representing

All products, coverages, and options are not available in all states, and eligibility requirements will apply. Products and services referenced in this Web site are provided through multiple companies. Each company has financial responsibility only for its own products and services, and is not responsible for the products and services provided by the other companies.

Life insurance and annuities are issued through American National Insurance Company, Galveston, TX. Personal and commercial lines insurance is issued by American National Property And Casualty Company (ANPAC®), Springfield, MO, its subsidiaries or affiliates, including American National General Insurance Company, Pacific Property And Casualty Company (California), American National Lloyds Insurance Company (Texas), American National County Mutual Insurance Company (serviced by ANPAC®-Texas), and ANPAC® Louisiana Insurance Company (Louisiana). American National Property And Casualty Company is a subsidiary of American National Insurance Company.

Disability Income products and services are issued by Illinois Mutual Life Insurance Company, Peoria, IL.

Tax issues that may be discussed are subject to change, and this is for your information only. Discussion of such issues does not constitute tax or legal advice. Please consult your tax advisor, attorney or CPA for guidance on all tax matters.

These brief descriptions of coverages available are for illustration purposes only, and are not intended as a statement of contract. For actual terms and conditions of coverage provided, refer to your insurance policy. For more information about coverage options and availability, talk to your American National agent. American National Family of Companies reserves the right to discontinue programs at any time.

This site may have links to other sites not maintained by American National Insurance Company, its subsidiaries or affiliates. Such links do not imply endorsement or approval of these sites or the content therein by American National, its subsidiaries or affiliates.