A 'survivorship' (second-to-die) life insurance policy is BEST characterized by which of the following?

Explanation

A survivorship — also called 'second-to-die' or 'last survivor' — policy insures two lives on a single contract and pays the death benefit only when BOTH insureds have died. Because the insurer's risk is delayed until the second death, premiums are substantially lower than two separate single-life policies. Survivorship policies are heavily used in estate planning: federal estate tax is generally deferred until the second spouse dies (unlimited marital deduction under IRC §2056), so liquidity is needed precisely at that moment. The policy is typically owned by an ILIT to keep proceeds outside both spouses' estates. Option A describes a 'first-to-die' policy (a different product). Option B is fabricated. Option C — survivorship is more commonly sold on older couples engaged in estate planning.