A joint life (first-to-die) policy insures two people on one contract. The death benefit is payable:

Why A is correct

A joint life policy pays the death benefit upon the first death of the two insureds, and the policy terminates at that point. It is the mirror image of a survivorship, or last-to-die, policy, which pays only when the second insured dies. Joint life is often used to cover two working spouses or business partners whose survivors need funds immediately after the first death. Because a single premium funds one benefit event, the contract ends after the first payment and no further coverage remains on the surviving insured.

Why the other options are wrong

• B) Payment on the second death describes a survivorship or last-to-die policy, which is the opposite of a first-to-die joint life contract. This design suits couples who want the survivor to receive funds immediately upon the first death.
• C) Only one death benefit is payable under a first-to-die contract; the policy does not pay separately on each insured's death. It is used when the need is to fund estate taxes or provide for heirs at the last death.
• D) There is no simultaneous-death requirement in a first-to-die joint policy; the benefit is triggered by the first death whenever it occurs. The contract is priced for a single benefit event, so coverage ends once the first death benefit is paid.

Memory hook

First-to-die pays at the first coffin, then the contract ends. Second-to-die waits for the last one.