A survivorship life policy is designed to pay upon the death of which person?

• A. The death of the last insured
• B. The death of the first insured
• C. Upon any insured death
• D. On the policy anniversary

Answer: (A)

Survivorship life insurance pays after both insured individuals have died. In a two-person policy, the death benefit is triggered by the death of the last surviving insured, not the first. This format is often used for estate planning, to provide funds for estate taxes, liquidity for heirs, or to fund trusts once both spouses (or partners) have passed away. It differs from first-to-die or single-life policies, which pay out upon the death of the individual insured or the first death. The payout does not occur at a policy anniversary or at the death of either one alone.