Which policy pays out upon the death of the last surviving insured?

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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 pays out upon the death of the last surviving insured?

Explanation:
A survivorship life policy pays out when the second of the two insured individuals dies. This is why it’s ideal for estate planning: it creates a funds pool to cover estate taxes, fund a trust, or pass assets to heirs after both people are gone. It’s different from a joint life policy, which pays on the first death, and from term or whole life policies that insure a single person and pay out after that person dies (term for a set period, whole life for life). This is also known as a second-to-die policy.

A survivorship life policy pays out when the second of the two insured individuals dies. This is why it’s ideal for estate planning: it creates a funds pool to cover estate taxes, fund a trust, or pass assets to heirs after both people are gone. It’s different from a joint life policy, which pays on the first death, and from term or whole life policies that insure a single person and pay out after that person dies (term for a set period, whole life for life). This is also known as a second-to-die policy.

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