Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A policy that covers two insureds and pays the death benefit when the first of the two insureds dies is known as:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Joint life insurance covers two lives and pays the death benefit upon the FIRST death, after which the policy typically terminates. It is often used to cover a married couple or two business partners when funds are needed at the first death, such as to fund a buy-sell arrangement. Survivorship (last survivor) insurance, by contrast, pays only upon the second death.
Why the other options are wrong
- B) Survivorship (last survivor) insurance pays when the second of the two insureds dies, not the first, a directly opposite trigger.
- C) A family income rider provides a monthly income after the insured's death for a specified period; it is not a two-life policy paying on first death.
- D) Juvenile insurance is a policy on a minor child's life, not a two-life contract.
Memory hook
Joint life pays on the first to go; survivorship pays on the last one standing.