The type of multiple protection coverage that pays on the death of the last person is called a(n)

• A. Endowment life policy
• B. Joint life policy
• C. Survivorship life policy
• D. Term life policy

Answer: (C)

Survivorship life policy, also called a second-to-die policy, is designed to pay out only after the death of the last surviving insured. This means the coverage stays in force for more than one person and the death trigger is the second death, not the first. This makes it especially useful for estate planning, where the goal is to provide funds to cover obligations that arise after both spouses (or multiple insureds) have passed, such as estate taxes or liquidity for heirs.

This differs from other types: an endowment policy pays either at a set maturity date or upon death, whichever comes first; a joint life policy pays out upon the death of the first insured; and term life pays only if death occurs during the term, with no consideration for the last surviving individual. Thus, only the survivorship policy aligns with paying on the death of the last person.