Life Insurance FundamentalsQuestion 139 of 716
Which best describes a survivorship (second-to-die) life insurance policy?
a.Pays a death benefit when the first of two insureds dies
b.Pays a death benefit only if both insureds die in the same year
c.Pays a death benefit equally split between two named beneficiaries
d.Pays a death benefit only after both insureds have died
Explanation
A survivorship or second-to-die policy insures two lives and pays the death benefit only at the second death. Premiums are lower than two single policies, which is why it is popular for estate-tax liquidity planning.
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)