Survivorship covers two people and pays upon the death of the last insured.

Study for the Texas General Lines – Life, Accident, and Health Insurance exam. Engage with questions, hints, and explanations. Get exam ready!

Multiple Choice

Survivorship covers two people and pays upon the death of the last insured.

Explanation:
A survivorship policy covers two lives and pays when the second death occurs. This second-to-die structure is used in estate planning to provide funds after both insured individuals have passed, often to cover estate taxes or to leave assets to heirs. This is different from a joint life policy, which pays out on the death of the first insured, not the last. A universal life policy is a flexible permanent policy with a cash value component and is not defined by paying on the second death. A family life policy isn’t the standard term for the survivorship setup.

A survivorship policy covers two lives and pays when the second death occurs. This second-to-die structure is used in estate planning to provide funds after both insured individuals have passed, often to cover estate taxes or to leave assets to heirs. This is different from a joint life policy, which pays out on the death of the first insured, not the last. A universal life policy is a flexible permanent policy with a cash value component and is not defined by paying on the second death. A family life policy isn’t the standard term for the survivorship setup.

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