Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A policy insures two lives and pays the face amount upon the death of the first insured to die. This type of policy is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Joint life insurance covers two or more lives under one contract and pays the death benefit when the first insured dies; the surviving insured typically has the right to continue or convert coverage. It is often used by married couples or business partners who want a benefit at the first death. Survivorship (last survivor) insurance instead pays at the second death, a tool for estate planning. Family income protection pays a monthly income after death, and decreasing term features a declining face amount tied to a debt.
Why the other options are wrong
- B) Survivorship, or last survivor, insurance delays the death benefit until the second insured dies. The policy in the question pays at the first death, which is the opposite timing.
- C) Family income protection pays a monthly income to the family after the insured's death. It does not pay a lump-sum face amount upon the death of the first of two insureds.
- D) Decreasing term features a death benefit that declines over time, typically to match an outstanding debt, and it covers a single life. It does not cover two lives with a benefit at first death.
Memory hook
Joint life pays on the first goodbye; survivorship pays on the last one standing.