West Virginia State Life Insurance Practice Exam

What type of policy pays out after the first of two insured individuals dies?

1. Survivorship Policy

2. Joint Life Policy

3. Universal Life Policy

4. Endowment Policy

The correct answer is: Joint Life Policy

A Joint Life Policy is designed specifically to cover two individuals under a single policy and pays out a death benefit when the first insured individual dies. This type of policy is useful for couples or business partners who want to ensure that there is financial support or a benefit available upon the death of either party. In contrast, a Survivorship Policy, also known as a second-to-die policy, does not pay out until both insured individuals have passed away, making it different from the Joint Life Policy. Universal Life Policies are flexible permanent life insurance products that focus on building cash value over time and do not determine payout based on the deaths of two individuals together. An Endowment Policy, on the other hand, pays out a specified sum either upon the death of the insured before a certain age or at the end of a specified term if the individual survives, which does not apply to the context in question.