79. Under a multiple protection policy, the policy that pays on the death of the last person is called
Answer: B
A survivorship life policy pays on the death of the last person.
A survivorship life policy is specifically designed to provide a death benefit upon the passing of the second insured individual, making it distinct from other types of life insurance policies.
A) a universal life policy.
A universal life policy is a flexible premium, adjustable benefit life insurance that allows policyholders to adjust their premiums and death benefits. However, it does not specifically pay on the death of the last person; instead, it pays upon the death of the individual insured.
B) a survivorship life policy.
A survivorship life policy is correctly identified as the type of policy that pays out upon the death of the last person insured. It is designed for couples or partners where the death benefit is provided after both individuals have passed away, thus serving as an effective estate planning tool.
C) a joint life policy.
A joint life policy provides coverage for two individuals but pays out upon the death of the first insured person. This means it does not fulfill the requirement of paying upon the death of the last person, making it an incorrect choice.
D) an annuity life policy.
An annuity life policy is designed to provide regular payments to the policyholder over a specified period or for their lifetime, rather than providing a death benefit. Thus, it does not relate to the death of individuals and is not applicable in this context.
Conclusion
The survivorship life policy is the only option among the choices that accurately fits the description of paying on the death of the last insured individual. All other options either describe different types of life insurance or financial products that do not meet the criteria set forth in the question.