Which policy pays out on the first death?

• A. Term life
• B. Whole life
• C. Joint life
• D. Survivorship

Answer: (C)

This item tests understanding of how multi-life policies trigger benefits. A joint life policy covers two people and is designed to pay out when the first one dies. After that payout, the coverage typically ends, since the policy is written to insure two lives but only provide a single death benefit in the first-to-die arrangement. This contrasts with survivorship, which pays on the death of the last surviving person. Term life and whole life describe single-life coverages (or joint forms only if issued as such), and they don’t define a payout that occurs upon the first death of two lives in a policy. Therefore, the policy that pays out on the first death is a joint life policy.