Under current federal tax law, the unlimited marital deduction allows one spouse to leave an unlimited amount of assets to his or her surviving spouse, at the first spouse's death. This means there is no estate tax due at the first spouse's death. At the death of the surviving spouse, however, estate taxes are levied and due within nine months of the second death. Since taxes are not due until the second death, a relatively inexpensive type of life insurance called Second to Die (or survivorship) life insurance is often used to help pay taxes. Second to Die Life insurance is usually much less expensive than conventional life insurance and pays off at the second death. Second to Die insurance can be easier to qualify for than conventional life insurance. Often, this coverage is still attainable, even when one spouse's health is not good.

Additional Information on Estate Planning:

Estate Planning Overview
Irrevocable Life Insurance Trusts (ILITS)
Using Ownership and Beneficiary Designations
How to Get Existing Policies Out of my Estate
Can the Three-Year Rule be Avoided?
Second to Die Life (Survivorship) Insurance
Gifts - Overview
Leveraging Your Gifting Program
Grandchildren
Generation Skipping
Living Trusts
Credit Bypass Trust
Charitable Remainder Trusts
Avoid Capital Gains Income for life

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