What Happens To Life Insurance When Both Parents Die? 
I agree with David 's answer . But do want to add that there is a type of life insurance that pays out when the second parent passes , called `` second to die life insurance '' or `` survivorship life insurance '' . If the purpose of the life insurance is to pay taxes for one 's estate or pass an estate to children , this can be a good policy to get . It also works well if one parent is uninsuable and the purpose of the policy is not to provide for the other spouse . 