Which policy pays out after 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

Which policy pays out after the death of the last insured?

Explanation:
Payout timing for policies covering two lives depends on whether the benefit triggers at the first death or the second death. A survivorship life policy pays the death benefit only after both insured individuals have died, which is why it’s often used for estate planning and providing liquidity to heirs after the second death. The other types work differently: a joint life policy pays out when the first insured dies, providing funds right away to the survivor; a term life policy pays only if a death occurs during the term and then ends. Some refer to survivorship arrangements as survivorship policies, but the standard term that matches “pays after the death of the last insured” is survivorship life.

Payout timing for policies covering two lives depends on whether the benefit triggers at the first death or the second death. A survivorship life policy pays the death benefit only after both insured individuals have died, which is why it’s often used for estate planning and providing liquidity to heirs after the second death. The other types work differently: a joint life policy pays out when the first insured dies, providing funds right away to the survivor; a term life policy pays only if a death occurs during the term and then ends. Some refer to survivorship arrangements as survivorship policies, but the standard term that matches “pays after the death of the last insured” is survivorship life.

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