Best Survivorship Life Insurance in Arizona: Estate Planning
Best Survivorship Life Insurance in Arizona: Estate Planning
For high-net-worth couples in Arizona, preserving wealth and managing estate taxes is a top priority. Survivorship life insurance—also called second-to-die insurance—is a powerful, tax-efficient solution designed to help you protect your family’s legacy and provide liquidity for estate taxes or other expenses after both spouses have passed.
Whether you live in Scottsdale, Phoenix, Tucson, or surrounding areas, this type of insurance offers benefits tailored to Arizona’s unique demographic of affluent retirees, business owners, and wealth builders.
What Is Survivorship Life Insurance?
Survivorship life insurance is a single policy that covers two individuals, typically spouses. The death benefit pays out only after the second insured person dies. Because it covers two lives, this insurance generally has lower premiums than buying two separate individual policies.
It is often used as a wealth planning tool to:
* Cover federal estate taxes
* Provide funds to pay debts and administrative costs
* Preserve family businesses and real estate
* Fund trusts or charitable causes
Why Arizona Residents Should Consider Survivorship Life Insurance
Arizona is home to many affluent couples, including retirees migrating for the warm climate and entrepreneurs who’ve built thriving businesses. While Arizona does **not have a state estate tax**, large estate may still owe significant federal estate taxes, especially given the projected reduction of federal exemptions in coming years.
For those with sizable estates, survivorship life insurance provides a way to:
* Avoid forced sales of assets to pay taxes
* Transfer wealth efficiently to heirs
* Ensure liquidity for trust or foundation funding
* Reduce the tax burden and preserve the family legacy
Benefits of Survivorship Life Insurance in Arizona
* **Cost Savings**: Typically lower premiums than two individual policies
* **Tax Advantages**: Death benefit generally income-tax-free and can be structured to avoid estate inclusion
* **Legacy Protection**: Ensures heirs have funds to settle estate taxes and expenses without liquidating assets
* **Trust Ownership**: Can be owned by an irrevocable life insurance trust (ILIT) to protect proceeds from estate taxes
—
“Mintco Financial helped us understand how survivorship life insurance fits into our estate plan. Their expertise made the process simple and clear. We now feel confident our legacy is protected.” – J & M T.
Things to Consider
While survivorship life insurance has many benefits, it also requires thoughtful planning:
* **Policy Complexity**: Requires legal and financial coordination, especially when setting up trusts
* **Long-Term Commitment**: Premiums are generally higher than term insurance and meant for long-term coverage
* **Regular Reviews**: Tax laws and estate thresholds change, so it’s critical to revisit your plan regularly
—
“As business owners, we worried about estate taxes affecting our family’s future. Mintco’s team recommended survivorship insurance that fits our needs perfectly. Their fiduciary advice was invaluable.” – D & L R.
How to Get Started with Survivorship Life Insurance in Arizona
1. **Consult with a fiduciary financial advisor**
They’ll analyze your estate and help determine if survivorship insurance fits your goals.
2. **Estimate your estate tax exposure**
Project future federal estate tax liability based on current and anticipated laws.
3. **Choose a policy and ownership structure**
Often, policies are held in an ILIT to keep death benefits outside your taxable estate.
4. **Review and update regularly**
Stay ahead of tax law changes and life circumstances to keep your plan optimized.
—
“We appreciate Mintco’s educational approach. They patiently walked us through survivorship life insurance options and how it secures our family’s wealth.” – S & R W.
Ready to Protect Your Arizona Legacy?
If you want to safeguard your family’s future and make estate tax planning easier, survivorship life insurance may be the right tool for you.
Work with Mintco Financial’s fiduciary advisors who specialize in Arizona estate planning and insurance solutions. Schedule a virtual meeting today to explore how this strategy can help protect your wealth and legacy.