Survivorship life insurance is used to provide:

Rationale

Payment on the last death.

Survivorship life insurance, also known as second-to-die insurance, typically pays out upon the death of the last insured individual. This type of policy is commonly used in estate planning to provide a financial benefit to beneficiaries after both policyholders have passed away.

A (payment on the first death) YOUR ANSWER

Survivorship life insurance policies do not pay out upon the death of the first insured individual. Instead, the policy remains in force until the death of the second insured person, at which point the beneficiaries receive the death benefit.

B (payment on the last death) CORRECT

This is the correct answer. Survivorship life insurance policies are structured to provide a payout upon the death of the last insured person. This feature allows for the benefit to be utilized for estate planning purposes or to provide for dependents after both policyholders have passed away.

C (cash value in a 401(k) plan) YOUR ANSWER

Survivorship life insurance is a separate type of policy and is not related to cash value in a 401(k) plan. A 401(k) plan is a retirement savings account sponsored by an employer, and the cash value represents the balance of funds in the account.

D (retirement income) YOUR ANSWER

Survivorship life insurance is not designed to provide retirement income. It is primarily used to provide a death benefit to beneficiaries after the death of the last insured individual. Retirement income is typically derived from sources such as pensions, annuities, or retirement savings accounts.

Conclusion

Survivorship life insurance policies offer a unique way to provide a financial benefit to beneficiaries upon the death of the last insured individual. By understanding the specific features of this type of insurance, individuals can effectively incorporate it into their estate planning strategies to ensure financial security for their loved ones.

Survivorship life insurance is used to provide:

Payment on the last death.

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