Why is term life insurance not suitable for survivorship life insurance?

Term life insurance is designed to provide coverage for a specific period, usually between one to thirty years, and is often referred to as short-term coverage. In the context of survivorship life insurance, which covers two individuals (usually spouses) and pays a death benefit only after both have passed away, term life insurance is not suitable because it does not provide long-term coverage.

Survivorship life insurance is intended to offer a death benefit that will support beneficiaries after both insured individuals have died, a scenario that often occurs later in life. Given that term policies can expire before both individuals reach that point, they fail to fulfill the long-term coverage needs that survivorship insurance aims to address. This inherent limitation makes term life insurance an inadequate choice when the goal is to ensure a benefit that can be realized upon the passing of both insured parties, especially if they live well into their later years.

The focus on providing a solution that lasts for a lifetime and addresses the specific need of securing funds for heirs after both insured individuals die is what makes survivorship life insurance necessary, as opposed to simply relying on a term life policy.