West Virginia State Life Insurance Practice Exam

When is the face amount paid under a Joint Life and Survivor policy?

1. Upon the death of the first insured

2. At the policy's maturity date

3. Upon the death of the last insured

4. Upon cancellation of the policy

The correct answer is: Upon the death of the last insured

In a Joint Life and Survivor policy, the face amount of the policy is paid out upon the death of the last insured. This type of policy typically covers two individuals, often spouses, and is designed to provide a death benefit that lasts until both insured individuals have passed away. The structure of this policy allows it to serve a specific purpose, usually to ensure that the surviving spouse or partner has financial protection after the death of the last insured. As such, the primary feature of a Joint Life and Survivor policy is that it does not pay out the death benefit upon the death of the first insured; instead, the benefits are contingent upon both individuals being deceased. This distinguishes it from other policies which may pay out benefits at different times or under different circumstances, such as cancellation or maturation of the policy. Thus, understanding this policy structure clarifies why the correct answer is that the face amount is paid upon the death of the last insured.