85. Which type of life insurance policy is written under a single contract for both spouses in which it is payable upon the first death?
Answer: C
Joint life insurance policies are written under a single contract for both spouses and are payable upon the first death.
Joint life insurance policies combine coverage for both spouses into one contract, ensuring that the death benefit is paid out upon the first death among the insured individuals.
A) Survivorship.
Survivorship life insurance policies, also known as second-to-die policies, are designed to pay out only after the second insured individual passes away. This makes them fundamentally different from joint life insurance, which pays at the first death.
B) Dual capacity.
Dual capacity does not refer to a specific type of life insurance policy but rather to an arrangement involving two roles or functions. This term does not apply to the context of life insurance policies concerning the death benefit structure for spouses.
C) Joint.
Joint life insurance policies are specifically designed to cover two individuals under one contract, paying out upon the first individual's death. This directly aligns with the question's description, making it the correct option.
D) Spousal.
While spousal life insurance may imply coverage for a husband and wife, it does not indicate that the policy is structured as a single contract paying out upon the first death. It may refer to individual policies taken out for each spouse rather than a joint arrangement.
Conclusion
The joint life insurance policy is the most accurate term for a policy that covers both spouses under a single contract and pays upon the first death. Other options like survivorship or spousal do not meet the criteria outlined in the question, leading to the conclusion that C) Joint is the definitive correct answer.