Ace California Life & Health Insurance Exam 2026 – Burst Into Your Bright Insurance Future!

A joint life policy is designed specifically to cover two individuals and provides a death benefit when the first person passes away. This type of policy is often used by couples, business partners, or any two people who want to ensure that the financial impact of one person's death is covered for the surviving party.

The intent behind a joint life policy is to offer immediate financial relief to the surviving individual. Once the benefit is paid out due to the first death, the policy typically terminates, meaning no further benefits are paid out for the second individual after the first person's death.

Other policy types do not operate in the same way. A joint policy may refer more generally to policies that cover multiple people but does not specify the payout on the first death. A survivorship policy, on the other hand, pays out only after the second individual has died, which is quite different from the immediate payout of a joint life policy. Lastly, a term policy can cover a single individual or multiple but does not specifically relate to the structure of payouts upon the first death. Thus, the joint life policy is clearly the correct choice for this scenario.