79. Under a multiple protection policy, the policy that pays on the death of the last person is called
Answer: B
B: a survivorship life policy.
A survivorship life policy is specifically designed to pay out a death benefit only after the death of the last insured individual. This type of policy is commonly used for estate planning purposes, allowing for the deferral of estate taxes until both insureds have passed away.
A) a universal life policy.
A universal life policy is a type of permanent life insurance that offers flexibility in premium payments and death benefits. However, it does not stipulate that the payout occurs only after the last insured individual dies, making it incorrect for this question.
B) a survivorship life policy.
This option is correct as it accurately describes a policy that pays out upon the death of the last insured person. Survivorship life policies are often used in situations where individuals want to provide for heirs after both partners have passed away.
C) a joint life policy.
A joint life policy typically pays out on the death of the first insured individual. This does not align with the definition provided in the question, as it does not wait for both individuals to pass away before making a payment.
D) an annuity life policy.
An annuity life policy is primarily a financial product designed to provide income during retirement, rather than a life insurance policy that pays out upon death. Therefore, it does not meet the criteria outlined in the question.
Conclusion
The correct answer is a survivorship life policy because it specifically pays on the death of the last insured individual, distinguishing it from other types of life insurance policies that do not share this characteristic. All other options fail to meet the criteria set forth in the question, making them incorrect choices.