What is the type of life policy that pays on the death of the last surviving insured?

• A. Joint Life Policy
• B. Survivorship Life Policy
• C. Term Life Policy
• D. Whole Life Policy

Answer: (B)

Survivorship life insurance, also called second-to-die coverage, is designed for two insured lives and pays the death benefit only after the second person dies. This timing makes it especially useful for estate planning, when funds are needed to cover estate taxes, debts, or to pass on assets to heirs after both individuals have passed away.

A joint life policy, in contrast, pays out at the death of the first insured, not after both have died. Term life provides coverage for a set period and ends if the insured is still alive at the end of that term, with no emphasis on the second death. Whole life covers a single insured for life (though there are joint variations), but not specifically tied to the death of the last surviving insured.

So the policy type that pays on the death of the last surviving insured is survivorship life insurance.