A life insurance policy written on one contract for two people in which it is payable upon the first death is called

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Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

A life insurance policy written on one contract for two people in which it is payable upon the first death is called

Explanation:
When two lives are covered under one contract and the death benefit is paid upon the death of the first insured, this is a First-To-Die policy. The purpose is to provide liquidity or financial support at the first death, after which the policy ends. This contrasts with a survivorship (second-to-die) policy, which pays after both insureds have died and is often used for estate planning. While it's a form of joint life coverage since two lives are insured, the defining feature here is the payout timing—at the first death.

When two lives are covered under one contract and the death benefit is paid upon the death of the first insured, this is a First-To-Die policy. The purpose is to provide liquidity or financial support at the first death, after which the policy ends. This contrasts with a survivorship (second-to-die) policy, which pays after both insureds have died and is often used for estate planning. While it's a form of joint life coverage since two lives are insured, the defining feature here is the payout timing—at the first death.

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