Joint Last-to-Die Life insurance: How Does it Work?

My Parents by Jeff Kramer
Get a tax-free benefit after
the death of the second spouse
on the policy.
Photo by Jeff Kramer

Joint Last-to-Die Life Insurance pays out a tax-free benefit to the insured's beneficiary(s) on the passing of a second spouse on the policy.

Joint Last-to-Die policies are significantly cheaper than individual single-life policies because the insurance company does not pay out the money until further in the future.

Joint Last-to-die policies are generally designed to offset some type of future tax liability. This liability could be in the form of the capital gains related to an investment property or business, or it could be in the form of other taxes related to an RRSP or RRIF.

Some individuals also use Joint Last-to-Die coverage for estate creation, to provide funds for a charity, or to create a financial legacy. Joint Last-to-Die policies are usually permanent. For example, plans in which the coverage stays with the insured couple for their lifetime can either be payable for life or paid in a limited number of years, such as 10, 15, or 20 years.

For more details on Joint Last-to-Die Life Insurance Coverage, please contact us at 1-866-899-4849 or visit our Whole Life Insurance Quote Page.

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  1. Aman Kapur 02/27/2013 at 3:03 pm

    Very good article!
    JLTD policies are very beneficial when it come to estate planning. It prevents taxation and preserves the assets for the next generation. Your heirs get truly what you have left for them!!

  2. Y Lewis 11/27/2013 at 8:40 pm

    Can a last die life ins. policy have premiums stop after the first death

  3. LSM Insurance 11/27/2013 at 9:15 pm

    Yes last to doe premiums can stop after the death but this is more expensive and less common than last to die policies payable to the second death.

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