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.

In a joint life insurance policy, both spouses are covered under one contract, and the benefit is paid out upon the death of the first insured. This type of policy is designed to provide financial support to the surviving spouse immediately after the first death occurs.

A (Survivorship.) YOUR ANSWER

Survivorship life insurance, often referred to as survivorship whole life, covers two lives but pays out only after both have passed away. This type of policy is not payable upon the first death, making it unsuitable for the scenario described in the question.

B (Dual capacity.) YOUR ANSWER

Dual capacity is not a recognized term in life insurance policies. It may refer to a situation where an individual holds two roles or responsibilities, but it does not pertain to any specific type of life insurance policy that insures spouses under a single contract.

C (Joint.) CORRECT

A joint life insurance policy is specifically designed for two individuals, typically spouses, and pays out upon the death of the first insured. This feature makes it distinct and suitable for providing immediate financial support to the surviving spouse.

D (Spousal.) YOUR ANSWER

Spousal life insurance typically refers to individual life insurance policies that cover one spouse and may allow the other spouse to be the beneficiary. Unlike a joint policy, it does not combine the coverage into a single contract, nor does it pay out upon the first death in a shared manner.

Conclusion

The joint life insurance policy effectively combines coverage for both spouses into one contract, ensuring that the death benefit is triggered by the first death. This characteristic allows for immediate financial relief to the surviving spouse, distinguishing it from other types of policies such as survivorship or individual spousal coverage, which do not share this feature.

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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