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, which is what the correct description says. 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. The description that pays when the FIRST of the two insureds dies is a 'first-to-die' policy, a different product, and it gets the estate-tax timing backwards. The version calling it a non-renewable, non-convertible term contract that simply ends at the close of the level-premium period is fabricated. And the claim that it is sold only to individuals under age 30 and may not be issued on a married couple or owned by an irrevocable trust is backwards — survivorship is more commonly sold to older couples engaged in estate planning, and ILIT ownership is the norm.