Under a multiple protection policy, the policy that pays on the death of the last person is called

Rationale

A survivorship life policy.

A survivorship life policy, also known as a second-to-die policy, is designed to pay out a death benefit only after the second insured individual passes away. This type of policy is often used for estate planning purposes, ensuring that funds are available to cover taxes or other expenses after both individuals are deceased.

A (a universal life policy.) YOUR ANSWER

Universal life insurance is a flexible premium, adjustable benefit policy that allows policyholders to set their premium payments and adjust the death benefit. However, it does not specifically require the death of two insured individuals for payout, making it unsuitable as a description for the policy that pays upon the last person's death.

B (a survivorship life policy.) CORRECT

This option correctly identifies the type of policy that pays on the death of the last insured person. It is specifically structured to provide a benefit after both individuals covered by the policy have passed away.

C (a joint life policy.) YOUR ANSWER

A joint life policy provides coverage for two individuals and pays a benefit upon the death of the first insured. This means that it does not wait for the second insured's death, thus differentiating it from a survivorship life policy.

D (an annuity life policy.) YOUR ANSWER

An annuity life policy is not an insurance policy but rather a financial product designed to provide regular payments over time, typically during retirement. It does not involve death benefits or payouts based on the mortality of the insured individuals.

Conclusion

The survivorship life policy uniquely caters to the situation where benefits are contingent upon the death of both insured individuals, making it distinct from other life insurance products. Understanding the various types of life insurance policies is crucial for effective estate planning and ensuring financial security for beneficiaries after the passing of both insured parties.

Under a multiple protection policy, the policy that pays on the death of the last person is called

A survivorship life policy.

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