Which policy is designed to cover two lives and pay only after the second death?

• A. Joint Life Policy
• B. Survivorship Life Policy
• C. Term Life Policy
• D. Universal Life Policy

Answer: (B)

The main idea here is a life insurance setup for two people that pays out only after both have died. This is a survivorship or second-to-die policy. It covers two lives, but the death benefit isn’t triggered by the first death; it’s paid when the second insured person dies. This structure makes the policy especially useful for estate planning, providing liquidity to cover estate taxes, final expenses, or to leave inheritance to heirs after both spouses (or both individuals) have passed away. Since the benefit is tied to the second death, the policy can be more cost-effective than purchasing two separate policies, and it’s not designed to provide a payout upon the first death. This differs from a joint life policy, which pays on the first death, and from term or universal life policies, which aren’t inherently designed to cover two lives with a payout after the second death.