A policy written on two lives that pays out on the first death is commonly described as

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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 policy written on two lives that pays out on the first death is commonly described as

Explanation:
A policy written on two lives that pays out on the first death is joint life coverage. In this arrangement, a single policy covers both insureds and the benefit is paid when the first one dies, after which the policy ends. This is different from survivorship (second-to-die) plans, which pay only after both insureds have died. Some sources use the term first-to-die for the same concept, but the standard label for two-life coverage that triggers at the first death is joint life. A generic two-life policy doesn’t specify when the payout occurs, so it’s less precise for this description.

A policy written on two lives that pays out on the first death is joint life coverage. In this arrangement, a single policy covers both insureds and the benefit is paid when the first one dies, after which the policy ends. This is different from survivorship (second-to-die) plans, which pay only after both insureds have died. Some sources use the term first-to-die for the same concept, but the standard label for two-life coverage that triggers at the first death is joint life. A generic two-life policy doesn’t specify when the payout occurs, so it’s less precise for this description.

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