Which life insurance policy covers two lives and pays the face amount after the first death?

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

Multiple Choice

Which life insurance policy covers two lives and pays the face amount after the first death?

Explanation:
When two lives are insured under one policy, you have a joint life option versus a survivorship option. The policy that pays the face amount after the first death is a joint life policy (often called first-to-die). It covers two people and, upon the death of the first insured, the death benefit is paid and the policy ends. This contrasts with a survivorship policy, which pays only after the second death, and with term or whole life policies that insure a single life.

When two lives are insured under one policy, you have a joint life option versus a survivorship option. The policy that pays the face amount after the first death is a joint life policy (often called first-to-die). It covers two people and, upon the death of the first insured, the death benefit is paid and the policy ends. This contrasts with a survivorship policy, which pays only after the second death, and with term or whole life policies that insure a single life.

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