Which policy covers two or more people with the death benefit payable upon the last person's death?

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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

Which policy covers two or more people with the death benefit payable upon the last person's death?

Explanation:
This tests understanding of a policy that covers more than one person and pays out only after the last insured dies. A last-survivor (second-to-die) policy is designed exactly for that: the death benefit is triggered when the second person dies, providing funds for estate taxes, debts, or to pass assets to heirs. This is different from a joint life policy, which pays upon the first death, ending the policy. Some texts use survivorship life insurance to mean the same concept, but the option phrased as last-survivor matches the idea of paying after the last death.

This tests understanding of a policy that covers more than one person and pays out only after the last insured dies. A last-survivor (second-to-die) policy is designed exactly for that: the death benefit is triggered when the second person dies, providing funds for estate taxes, debts, or to pass assets to heirs. This is different from a joint life policy, which pays upon the first death, ending the policy. Some texts use survivorship life insurance to mean the same concept, but the option phrased as last-survivor matches the idea of paying after the last death.

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