National-LH-I Life Policy Types medium
Why does a survivorship whole life policy on two lives typically cost less in premium than two separate single-life whole life policies with the same combined face amount? A Because the insurer pays the death benefit only at the second death, deferring the claim and lowering joint mortality cost B Because survivorship policies are statutorily exempt from the state premium tax that otherwise applies to ordinary single-life coverage C Because the policy's accumulated cash value is permitted to grow entirely tax-free under IRC §101(a) on each of the two insured lives D Because survivorship policies require no medical underwriting whatsoever on either of the two insured lives at the time of issue
