Which is commonly used for estate liquidity for wealthy couples?

Survivorship (Second-to-Die) insurance is a type of life insurance that insures two lives, typically that of a married couple, and pays the death benefit only upon the death of the second insured individual. This financial tool serves a specific purpose for estate planning, especially for wealthy couples, as it can be used to provide liquidity to the estate after both individuals have passed away.

Upon the death of the second spouse, the policy's death benefit can help cover estate taxes, debts, or other expenses, ensuring that heirs receive their inheritance without the burden of liquidating assets. As a result, this type of policy is particularly advantageous for those who have considerable assets and want to provide for the financial stability of their estate without incurring significant costs while both partners are alive.

In contrast, joint life policies pay upon the death of the first insured, which might not align with the needs of estate liquidity for couples who aim to manage the estate's financial obligations after both partners have passed. Endowments typically provide a certain payout after a set term or upon the policyholder's death, but they are not specifically designed for estate liquidity like survivorship insurance. Credit life insurance is aimed primarily at paying off debt upon the death of the borrower and