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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

March/April 2025

Survivorship Policies: Filling a Need

Female broker makes offer to young African ethnicity married couple during meeting in company office. Family taking loan in bank, listening advisor, real estate agent and customers negotiating concept

A survivorship policy—also called a second-to-die policy—can be a valuable estate-planning tool.* It insures two lives, typically a married couple (or business partners), with the death benefit paid out after the second person's death.


The Strategy
The unlimited marital deduction allows one spouse to leave an unlimited amount of assets to the surviving spouse without owing estate or gift taxes. The assets become part of the survivor's estate at the first spouse's death. When the second spouse dies, proceeds from the life insurance policy are available to pay expenses.


Cost Advantages
Because the premium on a survivorship policy is based on the joint life expectancy of the insured, the cost may be significantly less than the cost of buying two single-life policies. Qualifying for a joint policy may also be easier since the survivor will continue to pay the premiums, and the death benefit isn't paid until the second spouse dies.


Multiple Uses
A survivorship policy is often purchased by couples who want to preserve more of their wealth for heirs. Additionally, survivorship policies can be used to:
  • Provide support for a special needs child after both parents have died.

  • Leave a legacy to support a charitable organization.

  • Provide the funds needed to pass on a family business while providing cash value for heirs that aren't involved. The policy also can help fund a buy-sell agreement upon the death of a business owner.


Survivorship policies are often used in conjunction with a trust. Talk to your financial and legal professionals for more information.


*Applications for life insurance are subject to underwriting. Insurance coverage exists only if the premium is paid to put the policy in force. Accessing cash values may result in surrender fees and charges and may require additional premium payments to maintain coverage, and will reduce the death benefit and policy values. Guarantees are based on the issuer's ability to pay claims.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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