Which policy type covers two lives and pays upon the death of the first insured?

Which policy type covers two lives and pays upon the death of the first insured?

• A. Term life
• B. Whole life
• C. Survivorship life
• D. Joint life

Answer: (D)

When a policy covers two lives and pays upon the death of the first insured, that’s a joint life policy. It is designed for two people and the death benefit is triggered by the first death, after which the policy generally ends (often a first-to-die arrangement). Survivorship life also covers two lives, but it pays out only after the second insured dies, which is used for estate planning. Term life and whole life, on the other hand, typically insure a single person. So the description fits joint life best.

When a policy covers two lives and pays upon the death of the first insured, that’s a joint life policy. It is designed for two people and the death benefit is triggered by the first death, after which the policy generally ends (often a first-to-die arrangement).

Survivorship life also covers two lives, but it pays out only after the second insured dies, which is used for estate planning. Term life and whole life, on the other hand, typically insure a single person. So the description fits joint life best.