Survivorship life policy is designed to provide benefits following which event?

• A. The death of the first insured
• B. The death of the last surviving insured
• C. Either insured dies
• D. The death of the younger insured

Answer: (B)

Survivorship life policies pay out on the death of the last surviving insured. This type of policy covers two lives and is commonly used in estate planning to provide funds after both individuals have passed away, such as to pay estate taxes or to leave assets to heirs. Because the payout isn’t triggered by the death of the first insured, the policy stays in force after the first death and only pays when the second insured dies. The benefit amount is typically the policy’s face value, paid once the second life dies. Other scenarios—payout at the death of the first insured, payout on either death, or payout only on the younger death—do not reflect survivorship design and describe different types of policies.