Which type of multiple protection policy pays on the death of the last person?

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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 type of multiple protection policy pays on the death of the last person?

Explanation:
A survivorship life policy, often called a second-to-die policy, covers more than one person and pays out when the last of them dies. This makes it different from a joint life policy, which pays upon the death of the first insured. Term life and whole life operate on the death of the individual insured, not on the last surviving person. Survivorship is commonly used in estate planning to provide liquidity for estate taxes or to ensure funds are available for heirs after both parents have passed. So the policy that pays on the death of the last person is survivorship life policy.

A survivorship life policy, often called a second-to-die policy, covers more than one person and pays out when the last of them dies. This makes it different from a joint life policy, which pays upon the death of the first insured. Term life and whole life operate on the death of the individual insured, not on the last surviving person. Survivorship is commonly used in estate planning to provide liquidity for estate taxes or to ensure funds are available for heirs after both parents have passed. So the policy that pays on the death of the last person is survivorship life policy.

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