First to die and last to die Life Insurance policies have in common all of the following, EXCEPT:

• A. They both continue in force after one of the named insureds dies
• B. They both insure two lives
• C. They both can pay a death benefit on the death of the first insured
• D. They both are types of multi-life policies

Answer: (A)

The key idea is how these two multi-life policies handle the death of one insured and what happens to the policy afterward. Both policies are designed for two lives and are types of multi-life contracts, so they share that framework. The important difference is what happens after the first death.

A first-to-die policy pays out at the death of the first insured and typically ends after that payment. In contrast, a last-to-die policy (survivorship) remains in force until the second insured dies and then pays. Because one ends after the first death while the other continues, the statement that they both continue in force after one of the insureds dies is not shared by both. That’s why it’s the exception. As a side note, the timing of the death benefit differs: the first-to-die triggers a payout on the first death, while last-to-die triggers on the second death.