Which type of life insurance policy is written under a single contract for both spouses in which it is payable upon the first death?

Rationale

Joint life insurance policy is written under a single contract for both spouses and is payable upon the first death.

This type of policy allows for coverage of two individuals under one contract, with the benefits payable to the designated beneficiary upon the death of the first insured spouse.

A (Survivorship.) YOUR ANSWER

Survivorship policies, also known as second-to-die policies, are designed to pay out benefits only after both insured individuals have passed away. This type of policy is not applicable to the scenario where the benefit is paid upon the first death, making it an incorrect choice.

B (Dual capacity.) YOUR ANSWER

Dual capacity is not a recognized term in life insurance terminology. It does not refer to any specific policy type and thus cannot be considered a valid answer to the question regarding a life insurance policy that pays out upon the first death of a spouse.

C (Joint.) CORRECT

A joint life insurance policy is specifically structured to cover two individuals under a single contract and provides a payout upon the death of the first insured. This characteristic makes it the correct answer to the question posed, as it matches the criteria described.

D (Spousal.) YOUR ANSWER

Spousal life insurance typically refers to policies that provide coverage for one spouse, but may not necessarily be under a single contract for both spouses. Such a policy does not ensure a payout upon the first death as required by the question, thus making it an incorrect choice.

Conclusion

A joint life insurance policy is uniquely structured to provide coverage for both spouses in a single contract, ensuring a payout upon the first death. This feature distinguishes it from other types of life insurance policies, such as survivorship or spousal policies, which do not meet the criteria outlined in the question. Understanding these distinctions is crucial for selecting the appropriate type of life insurance for couples.

Which type of life insurance policy is written under a single contract for both spouses in which it is payable upon the first death?

Joint life insurance policy is written under a single contract for both spouses and is payable upon the first death.

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