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

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

• A. Upon death of the first insured
• B. Upon death of the last insured
• C. At the end of the policy term
• D. Upon reaching a specified age

Answer: (B)

In a Joint Life and Survivor policy, the face amount is designed to be paid upon the death of the last insured individual. This type of policy covers two individuals, typically spouses, and its primary purpose is to provide a death benefit that continues to offer financial protection until the surviving insured passes away. This means that while the policy remains in effect, no payment is made when the first insured person dies; instead, the policy continues until the death of the second individual. This feature is especially important for ensuring that the surviving partner has sufficient coverage to manage financial responsibilities, such as mortgage payments or living expenses, after the passing of both insured parties. The other options suggest scenarios where a payment would be made either at the time of the first death, at the end of a policy term, or upon reaching a certain age, which do not apply to the structure and purpose of Joint Life and Survivor policies.

In a Joint Life and Survivor policy, the face amount is designed to be paid upon the death of the last insured individual. This type of policy covers two individuals, typically spouses, and its primary purpose is to provide a death benefit that continues to offer financial protection until the surviving insured passes away.

This means that while the policy remains in effect, no payment is made when the first insured person dies; instead, the policy continues until the death of the second individual. This feature is especially important for ensuring that the surviving partner has sufficient coverage to manage financial responsibilities, such as mortgage payments or living expenses, after the passing of both insured parties.

The other options suggest scenarios where a payment would be made either at the time of the first death, at the end of a policy term, or upon reaching a certain age, which do not apply to the structure and purpose of Joint Life and Survivor policies.