A married couple purchases a 250,000 Joint Life policy. When the older of the two dies, what is the amount payable to the survivor?

Prepare for the Louisiana Series 101 Life Insurance Exam with multiple choice questions and detailed explanations. Enhance your knowledge and succeed in your licensing exam!

Multiple Choice

A married couple purchases a 250,000 Joint Life policy. When the older of the two dies, what is the amount payable to the survivor?

Explanation:
A Joint Life policy pays the death benefit on the first death. When the older spouse dies, the survivor receives the full face amount of the policy, which is 250,000. After that payout, the policy ends because it’s designed to cover the two lives only until the first death. This differs from survivorship (second-to-die) policies, which pay after both lives have died.

A Joint Life policy pays the death benefit on the first death. When the older spouse dies, the survivor receives the full face amount of the policy, which is 250,000. After that payout, the policy ends because it’s designed to cover the two lives only until the first death. This differs from survivorship (second-to-die) policies, which pay after both lives have died.

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