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 policy is written under a single contract for both spouses and is payable upon the first death.
A joint life insurance policy is specifically designed to cover two individuals, typically spouses, under one policy, and it pays out the death benefit upon the first spouse's death.
A) Survivorship.
Survivorship life insurance, also known as second-to-die insurance, pays out the death benefit only after both insured individuals have passed away. This differs from a joint policy, which pays on the first death, making this option incorrect for the question posed.
B) Dual capacity.
Dual capacity is not a recognized term in life insurance policies. It does not refer to any specific type of life insurance and therefore cannot apply to the context of the question regarding a policy that pays on the first death.
C) Joint.
A joint life insurance policy is explicitly structured to cover two people under a single contract, providing a death benefit upon the first insured's death. This option accurately describes the type of policy referenced in the question.
D) Spousal.
While spousal life insurance may cover a spouse, it does not necessarily imply a joint policy written under a single contract. Spousal policies can be separate and may not pay out on the first death, making this option misleading in the context of the question.
Conclusion
The joint life insurance policy is the correct answer because it uniquely provides coverage for two individuals under one contract, with the benefit payable upon the first death. Other options either describe different types of policies or do not accurately represent the structure and function of the joint life insurance policy. Thus, C is the definitive choice.