Which policy pays the death benefit only after the last surviving insured dies?

Which policy pays the death benefit only after the last surviving insured dies?

• A. Joint Life
• B. Juvenile Life Insurance
• C. Group Life Insurance
• D. Survivorship Life

Answer: (D)

This type of policy is designed to pay the death benefit only after both insured individuals have died. It’s commonly called a second-to-die policy because the benefit is triggered by the death of the second person, not the first. That timing makes it especially useful for estate planning, since the payout can provide liquidity to cover estate taxes or to transfer wealth to heirs without needing to sell assets at the first death. Understand the contrast: a joint life policy pays out at the first death, often ending the coverage afterward, while survivorship life awaits the passing of the second person. Juvenile life insurance covers a child and isn’t about two lives, and group life is typically provided through an employer and pays when the insured dies, not after two lives have ended.

This type of policy is designed to pay the death benefit only after both insured individuals have died. It’s commonly called a second-to-die policy because the benefit is triggered by the death of the second person, not the first. That timing makes it especially useful for estate planning, since the payout can provide liquidity to cover estate taxes or to transfer wealth to heirs without needing to sell assets at the first death.

Understand the contrast: a joint life policy pays out at the first death, often ending the coverage afterward, while survivorship life awaits the passing of the second person. Juvenile life insurance covers a child and isn’t about two lives, and group life is typically provided through an employer and pays when the insured dies, not after two lives have ended.