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).

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.