Ask the Experts!
The professionals at Advanced Underwriting Consultants (AUC) answer the tax and technical questions posed by producers. Here’s the question of the day.
Question: Is there a benefit to having both a husband and wife as co-owners of a life insurance policy on the husband’s life?
Answer: There’s no real benefit to having the husband and wife co-own the policy other than they both have an ability to withdraw from its cash value.
On the contrary, co-ownership can provide a headache in certain situations. For example, if the non-insured wife dies first, then her ownership interest in the policy could go through probate if the ownership is held as tenants in common (as opposed to a right of survivorship).
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