A joint life (first-to-die) policy insures two people on one contract. The death benefit is payable:

Why A is correct

A joint life policy pays the death benefit upon the first death of the two insureds, and the policy terminates at that point. It is the mirror image of a survivorship, or last-to-die, policy, which pays only when the second insured dies. Joint life is often used to cover two working spouses or business partners whose survivors need funds immediately after the first death. Because a single premium funds one benefit event, the contract ends after the first payment and no further coverage remains on the surviving insured.

Why the other options are wrong

• B) Payment on the second death describes a survivorship or last-to-die policy, which is the opposite of a first-to-die joint life contract. This design suits couples who want the survivor to receive funds immediately upon the first death.
• C) Only one death benefit is payable under a first-to-die contract; the policy does not pay separately on each insured's death. It is used when the need is to fund estate taxes or provide for heirs at the last death.
• D) There is no simultaneous-death requirement in a first-to-die joint policy; the benefit is triggered by the first death whenever it occurs. The contract is priced for a single benefit event, so coverage ends once the first death benefit is paid.

Memory hook

First-to-die pays at the first coffin, then the contract ends. Second-to-die waits for the last one.

Why A is correct

Joint life insurance covers two lives under one policy and pays the death benefit on the first to die. It is commonly used by spouses or business partners who want funds available when the first insured dies, and it is generally less expensive than two separate policies. Joint life policies are often purchased to protect income or fund a plan that depends on the first death. Because only one death benefit is paid, the coverage ends when the first insured dies.

Why the other options are wrong

• B) Survivorship, or last-survivor, insurance pays at the second death, not the first, and is designed for estate planning rather than first-death income protection. It pays only after both insureds have died and is used for estate tax planning.
• C) Family income coverage is a rider that pays monthly income on the insured's death; it is not a two-life first-to-die contract. That rider pays on the death of a single insured and covers one life rather than two.
• D) Convertible term is an individual term policy with a conversion option; it covers one life and does not pay on the first of two deaths. A convertible term contract covers one life and has no first-of-two-deaths trigger.

Memory hook

First to go triggers the check in joint life; last to go triggers it in survivorship.

Why C is correct

A joint life policy covers two or more lives and pays the face amount when the first insured dies; coverage then terminates. It is commonly used to fund a buy-sell agreement so the surviving partner can use the proceeds to purchase the deceased partner's business interest. A survivorship, or last-to-die, policy pays only when the final insured dies and is typically used for estate-planning and second-to-die needs. The first-to-die trigger and the payment of a single face amount distinguish the joint life contract from other multiple-life arrangements.

Why the other options are wrong

• A) Survivorship (last-to-die) pays only when the last insured dies, which is the opposite trigger from the policy described in the question.
• B) Key person insurance is a single-life policy owned by a business on the life of a vital employee, not one policy covering two lives and paying at first death.
• D) A family income policy pays monthly income to survivors for a stated period, not a single lump sum at the first death among two business partners.

Memory hook

Joint life = pay at the first funeral. Survivorship = pay at the second funeral.

Why A is correct

A joint life policy insures two lives under one contract and pays the face amount upon the first death of the two insureds. The most common purpose is to provide immediate liquidity to the surviving spouse — replacing lost income, paying off debts, or covering final expenses at the moment the family's financial need arises. Because only one benefit is payable (on the first death), the premium is lower than the cost of two individual policies. This is the opposite design of a survivorship policy, which pays only on the second death and is typically used for estate tax liquidity.

Why the other options are wrong

• B) Funding estate taxes at the second death is the purpose of a survivorship (last survivor) policy, which pays on the second death. A joint life policy pays on the first death and is used for survivor liquidity, not estate tax timing.
• C) Joint life pays the face amount on the first death of the two insureds. Premium refunds are a return-of-premium feature unrelated to joint two-life designs, which do not refund premiums.
• D) Joint life is not an insurability guarantee for retirement. Guaranteed insurability is a rider allowing the insured to purchase additional coverage at specified times without new evidence of insurability.

Memory hook

Joint life = first to fall triggers the check. Two lives, one payout, immediate cash for the survivor.

Why A is correct

A joint life (first-to-die) policy covers two lives and pays the face amount when the first insured dies; coverage then terminates. It is commonly used where two people share an obligation — such as a married couple with a mortgage or business partners — so the survivor receives funds when the first death occurs. After the claim the survivor typically must purchase new coverage at the then-attained age if more protection is needed.

Why the other options are wrong

• B) Paying only at the second death describes survivorship (last-to-die) coverage, which is the opposite trigger of joint life.
• C) The policy pays once at the first death; paying twice requires two separate individual policies.
• D) Simultaneous death is not the trigger — the policy pays on the first death regardless of whether the deaths are simultaneous.

Memory hook

Joint life = first death pays and the policy is done. Survivorship = last death pays. Pick the death you are funding.

Why A is correct

A joint life policy covers two or more insureds and pays the death benefit upon the first death. This structure is commonly used in business settings, for example to fund a buy-sell agreement so the surviving partner has cash to purchase the deceased partner's interest, or by couples needing income when one spouse dies. The policy typically terminates or converts after the first death. This differs from a survivorship (last-to-die) policy, which pays only when the second insured dies.

Why the other options are wrong

• B) A survivorship (last-to-die) policy pays when the second of the two insureds dies, not the first.
• C) A key person policy covers a single vital employee and pays the company on that person's death.
• D) A family maintenance policy provides income to a family for a set period after the insured's death, not a joint first-to-die structure.

Memory hook

Joint life = pays on the first to go. Survivorship = pays on the last to go.

Why A is correct

A joint life policy written as first-to-die pays the death benefit upon the death of the first insured. It is often used by couples or business partners where the survivors need funds immediately after the first death. This contrasts with a survivorship (last-to-die) policy, which pays only when the second insured dies - a distinction covered under the special coverages in objective LIFE-II.B.4.

Why the other options are wrong

• B) Paying on the second death describes a survivorship (last-to-die) policy, not a first-to-die joint life policy.
• C) Simultaneous death is a common-disaster scenario; a first-to-die policy pays on the first death regardless.
• D) Paying at a stated age is a feature of endowments, not a first-to-die joint life policy.

Memory hook

First-to-die pays at the first funeral. Last-to-die waits for the second.