Question 39

Joint life insurance policy is written under a single contract for both spouses and is payable upon the first death.

A joint life insurance policy covers both spouses under a single contract, ensuring that the death benefit is paid out upon the death of the first insured spouse.

A) Survivorship.

Survivorship life insurance typically refers to policies that pay out only after both insured individuals have passed away. This is distinct from the joint policy described, which pays upon the first death, making this option incorrect.

B) Dual capacity.

The term "dual capacity" is not a standard categorization in life insurance and does not specifically refer to a type of policy for couples. Thus, it does not apply to the context of a policy that pays upon the first death, rendering this option incorrect.

C) Joint.

A joint life insurance policy is specifically designed to insure two individuals (in this case, spouses) under one contract, with the benefit being payable upon the first death. This definition aligns perfectly with the question, confirming it as the correct option.

D) Spousal.

While spousal life insurance may imply coverage for husbands and wives, it does not necessarily indicate that it is under a single contract or that it pays out upon the first death. Therefore, this choice lacks the precise definition required by the question and is incorrect.

Conclusion

The joint life insurance policy is the only option that accurately describes the arrangement of a single contract for both spouses, paying out at the first death. All other options either misrepresent the nature of the policy or do not fit the criteria specified in the question. Thus, option C is definitively correct.