What are death puts and how do they work?

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If you are an older investor looking to generate the most income you can by opting for longer-term bonds, you also may be concerned that these investments are likely to see their prices decline more than short-term bonds as interest rates begin to rise.

This means that your heirs could take a hit if they want to cash out your bond holdings after your death, without waiting a long time for them to mature. That’s where a feature called a survivor’s option, commonly referred to as a “death put,” could come in handy in estate planning.