81. Which of the following life insurance policies is written to insure two or more individuals with the face amount payable upon the death of the FIRST insured?
Answer: D
Joint insurance policies insure multiple individuals with the face amount payable upon the death of the first insured.
Joint life insurance policies are specifically designed to provide coverage for two or more individuals, with the benefit being paid out when the first insured individual passes away.
A) Modified
Modified life insurance typically refers to policies that have lower premiums in the initial years which later increase. This option does not relate to insuring multiple individuals or provide benefits upon the death of the first insured, making it incorrect in this context.
B) Joint and survivorship
Joint and survivorship policies are structured to pay the death benefit only after the last surviving insured passes away, rather than upon the death of the first insured. Therefore, this option does not fit the criteria of the question.
C) Convertible term
Convertible term insurance allows the policyholder to convert a term policy into a permanent policy without proof of insurability. This type of policy does not specifically address insuring multiple individuals or paying upon the death of the first insured, thus it is not the correct answer.
D) Joint
Joint life insurance policies provide coverage for two or more individuals and pay the death benefit upon the death of the first insured. This aligns perfectly with the question's requirement, making it the correct answer.
Conclusion
The joint life insurance policy is the only option that directly addresses the situation of insuring multiple individuals and ensures a payout upon the death of the first insured. The other options either pertain to different types of coverage or do not meet the criteria established by the question.