Xcel Life Policies Practice Exam 2025 – The Complete All-in-One Guide to Exam Success!

The survivorship life policy is designed to provide a death benefit upon the passing of the last surviving insured individual. This type of policy typically covers two lives, often spouses, and it is structured so that the benefit is not paid until both individuals have died. This characteristic makes it particularly useful for estate planning purposes, as it can help cover estate taxes or provide a financial legacy for heirs, ensuring that the funds are available after both insured parties are deceased.

This is different from a joint life policy, which pays out upon the death of the first insured, and multiple life policies, which may cover more than two individuals but do so in a manner similar to joint life policies rather than waiting for the last person. Dual life policies also do not typically wait for the last insured to pass before paying out. Thus, the unique feature of the survivorship life policy, where it only pays upon the death of the last insured, distinctly sets it apart from the other options.