Which policy covering two or more individuals terminates after paying benefits only on the second death?
A. Family policy.
B. Joint life policy.
C. Survivorship life policy. Correct
D. Limited payment whole life policy.
Rationale: A survivorship life policy specifically pays benefits only upon the death of the second insured individual. This structure is designed to provide financial support after both individuals have passed away, making it ideal for couples or partners.
In contrast, a family policy (A) covers multiple family members but pays out upon the death of any one of them, rather than waiting for the second death. A joint life policy (B) pays out upon the first death, which is fundamentally different from the survivorship model. Lastly, a limited payment whole life policy (D) is a type of whole life insurance that has a limited premium payment period but does not specifically address multiple lives or the timing of benefits related to deaths.
