What is a Joint Life (First to Die) policy?

What is a Joint Life (First to Die) policy?

• A. Covers two lives and pays on the second death.
• B. Covers two or more lives and pays on the first death.
• C. Pays only if both survive.
• D. Covers a single life.

Answer: (D)

Joint Life (First to Die) is a life insurance policy that covers two lives and pays out when the first insured person dies. After that payout, the policy ends. This setup is useful for providing financial protection to a surviving spouse or to cover shared debts like a mortgage. It’s different from a second-to-die (survivorship) policy, which pays only after the second person dies, and from a single-life policy, which covers just one person. So the correct description is that it covers two lives and pays on the first death.

Joint Life (First to Die) is a life insurance policy that covers two lives and pays out when the first insured person dies. After that payout, the policy ends. This setup is useful for providing financial protection to a surviving spouse or to cover shared debts like a mortgage. It’s different from a second-to-die (survivorship) policy, which pays only after the second person dies, and from a single-life policy, which covers just one person. So the correct description is that it covers two lives and pays on the first death.