Joint Last-to-Die Life insurance: How Does it Work?
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.
Posted by Chantal Marr.
Chantal Marr is a member of the Independent Financial Brokers of Canada.
Much of her success stems from her ability to listen to her clients' needs.
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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!!