What does SPO mean? Read on to discover the definition & meaning of the term SPO - to help you better understand the language used in insurance policies.
A survivor purchase option (SPO) is a rider to a life insurance policy that allows the designated beneficiary to receive the death benefit as cash or apply as much of it as desired to the purchase of a new life insurance policy for themselves. The added benefit is that the cost and underwriting of the latter is based on the health of the beneficiary at the time of the original policy's purchase.
We hope the you have a better understanding of the meaning of SPO.