Which type of policy pays on the death of the last person?

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

Answer: (A)

A survivorship policy is designed for two lives and pays out only when the second person dies, i.e., the last one to pass away. This makes it particularly useful for estate planning, providing liquidity to cover estate taxes or to leave funds to heirs after both individuals have died. In contrast, a joint life policy pays out at the death of the first insured, so the benefit is triggered earlier. Term life and whole life describe the duration or type of coverage for a single life and aren’t inherently structured to pay only after the last death. So, the policy that pays on the death of the last person is a survivorship (second-to-die) policy.