Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A joint life policy that pays the death benefit upon the first death of two insureds, and then terminates, is called:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Joint life insurance covers two lives and pays the face amount when the first insured dies; coverage then terminates, so no benefit is paid on the second death. First-to-die policies are often used in business buy-sell arrangements or family situations where funds are needed at the first death. By contrast, a survivorship (last survivor) policy pays only upon the second death, which is commonly used in estate planning to fund taxes when the surviving spouse dies.
Why the other options are wrong
- B) Survivorship insurance pays on the second death, not the first, which is the opposite trigger.
- C) A survivorship annuity is an income product that pays while either annuitant is alive, not a life insurance death benefit.
- D) Group life covers a defined class under a master contract; it is not the name of a two-life policy structure.
Memory hook
First-to-die pays at the first funeral; last-survivor pays at the second. Know which event pays.