What typically characterizes the death benefit in last survivor life insurance?

Last survivor life insurance, also known as second-to-die insurance, is particularly designed to provide a death benefit that becomes payable after the second insured person passes away. This type of policy is often used in estate planning, especially when the goal is to cover estate taxes or provide an inheritance for heirs after both parents or partners have died.

Typically, the death benefit is structured to be substantial, often in the range of $1,000,000 or more. This larger amount helps to ensure that sufficient funds are available to meet significant financial obligations that may arise after both insured individuals have passed away, such as settling estates or covering taxes.

Policies like this are advantageous for those looking to secure long-term financial planning benefits rather than immediate payouts, which further supports the idea that the death benefit is commonly higher than $1,000,000. The design of last survivor insurance is specifically focused on providing financial security after both parties are deceased, which aligns with the typical monetary values seen in these policies.