Which statement best describes Joint Survivorship Life (last to die) policy?

Which statement best describes Joint Survivorship Life (last to die) policy?

• A. A permanent policy written on two or more lives, with benefit paid when the last insured dies.
• B. A term policy covering a single life with a survivor benefit.
• C. A permanent policy written on a single life that pays on the death of the insured.
• D. A permanent policy written on two lives, with benefits paid at the first death.

Answer: (A)

In Joint Survivorship Life, the key idea is coverage on two or more lives with the death benefit paid only after the last of the insureds dies. It’s a permanent policy, meaning it stays in force for the lifetimes of the insureds (assuming premiums are paid), and it’s often used in estate planning to provide funds after both parents have passed or to cover estate taxes and liquidity needs for heirs. This contrasts with a first-to-die arrangement, where the benefit would be paid at the death of the first insured and the policy would typically end after that death. It also isn’t a single-life policy or a term policy, which cover only one person or a defined period, respectively. So the description that captures a permanent policy on two lives with the benefit paid at the death of the last insured best describes Joint Survivorship Life.

In Joint Survivorship Life, the key idea is coverage on two or more lives with the death benefit paid only after the last of the insureds dies. It’s a permanent policy, meaning it stays in force for the lifetimes of the insureds (assuming premiums are paid), and it’s often used in estate planning to provide funds after both parents have passed or to cover estate taxes and liquidity needs for heirs. This contrasts with a first-to-die arrangement, where the benefit would be paid at the death of the first insured and the policy would typically end after that death. It also isn’t a single-life policy or a term policy, which cover only one person or a defined period, respectively. So the description that captures a permanent policy on two lives with the benefit paid at the death of the last insured best describes Joint Survivorship Life.