What is the key feature of a joint life policy?

A joint life policy is designed to cover two or more individuals under a single insurance contract. The critical feature of this type of policy is that it matures and pays out benefits upon the first death among the covered individuals. This means that once one of the insured parties passes away, the policy pays out the agreed-upon benefit amount to the designated beneficiaries, and the coverage for the deceased individual ends.

This structure is particularly useful in scenarios such as business partnerships or marriages, where the death of one partner may significantly impact the financial stability of the remaining parties. The policy can help provide necessary financial support, such as covering debts or ensuring that surviving partners can maintain their standard of living.

In contrast, some of the other options reference characteristics that do not accurately apply to joint life policies. For example, a policy maturing after the last death pertains more to last survivor plans, while options discussing survival benefits or accidental death benefits typically relate to other types of life insurance products.