6. Under a multiple protection policy, the policy that pays on the death of the last person is called
Answer: B
A survivorship life policy
A survivorship life policy is specifically designed to pay out upon the death of the last insured person. This type of policy is commonly used in estate planning to provide financial support after both individuals have passed away.
A) a universal life policy
A universal life policy is a flexible permanent life insurance policy that combines a death benefit with a savings component. However, it does not specifically provide benefits based on the death of the last insured, making it incorrect in this context.
B) a survivorship life policy
A survivorship life policy is the correct answer because it is structured to pay out only after both insured individuals have died. This type of policy is ideal for couples or partners who wish to ensure that their beneficiaries receive a benefit after both have passed.
C) a joint life policy
A joint life policy pays out upon the death of the first insured individual. This makes it unsuitable for the question, as it does not cover the situation where payment is made only after the last person dies.
D) an annuity life policy
An annuity life policy is not a life insurance policy but rather a financial product that provides regular payments during retirement or a set period. It does not pay out upon death in the same manner as life insurance policies, making it irrelevant to the question.
Conclusion
The survivorship life policy is distinctively designed to provide a payout only after both insured individuals have died, making it the right choice for this question. Other options fail because they either provide benefits under different conditions or fall outside the definition of a life insurance policy. Thus, while options A, C, and D describe different financial products, only option B aligns with the specific requirement of the question.