What is the name of a single policy covering two or more lives that pays benefits upon the death of the first insured?

• A. Joint Life
• B. Survivorship Life
• C. Family Life
• D. Joint and Survivor Life

Answer: (A)

Concept: a policy that covers two or more lives and pays out on the death of the first insured is called a joint life policy. This type of policy is designed to provide a death benefit when the first person dies, which makes it useful for situations like replacing income for a surviving spouse or paying off a joint obligation such as a mortgage. After the first death, coverage typically ends, since the payout has occurred. This differs from survivorship life, which pays only after the last insured dies, and from joint and survivor life, which also covers two lives but pays on the death of the second insured and often has a different premium structure. Family life is a broader term that refers to policies designed for multiple family members but not specifically tied to a payout on the first death.