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.

A joint life insurance policy covers two individuals under one contract and pays out the death benefit upon the death of the first insured person. This type of policy is specifically designed to provide financial support to the surviving spouse, making it distinct from other policy types.

A (Survivorship.) YOUR ANSWER

Survivorship policies, often referred to as survivorship life insurance, are structured to pay out the death benefit only after both insured individuals have passed away. This type of policy does not provide immediate financial support upon the death of the first spouse, which is a key feature of the joint life insurance policy.

B (Dual capacity.) YOUR ANSWER

Dual capacity is not a recognized type of life insurance policy in standard terminology. This term may refer to situations where an individual has multiple roles or capacities, but it does not pertain to any specific life insurance product. Therefore, it does not fit the criteria outlined in the question regarding a policy covering both spouses.

C (Joint.) CORRECT

This type of policy is specifically designed for two insured parties under one contract, paying the death benefit upon the demise of the first insured spouse. This arrangement provides immediate financial relief to the surviving spouse, distinguishing it from other forms of life insurance.

D (Spousal.) YOUR ANSWER

Spousal life insurance generally refers to policies that cover one spouse, often with the option to add the other spouse. It does not specifically denote a policy that is written under a single contract for both spouses, nor does it ensure payment upon the first death, which is characteristic of a joint life insurance policy.

Conclusion

A joint life insurance policy is uniquely structured to offer coverage for both spouses under a single contract, with the critical feature of paying out the benefit upon the death of the first insured. Other options, such as survivorship or spousal policies, do not fulfill the requirements of the question, emphasizing the importance of understanding the specific terms and conditions of different life insurance products.

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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