QuestionAugust 24, 2025

Question 50 of 95 A joint life policy A. Is a form of group life insurance. B. Sets the premium based on the average age of the insureds. C. Pays the death benefit after the last insured's death. D. Is used to offset the liability of the estate tax upon the insured's death.

Question 50 of 95 A joint life policy A. Is a form of group life insurance. B. Sets the premium based on the average age of the insureds. C. Pays the death benefit after the last insured's death. D. Is used to offset the liability of the estate tax upon the insured's death.
Question 50 of 95
A joint life policy
A. Is a form of group life insurance.
B. Sets the premium based on the average age of the insureds.
C. Pays the death benefit after the last insured's death.
D. Is used to offset the liability of the estate tax upon the insured's
death.

Solution
4.2(395 votes)

Answer

None of the options correctly describe a joint life policy. Explanation 1. Identify the Definition of Joint Life Policy A joint life policy typically pays out upon the first death among the insured individuals, not after the last insured's death. 2. Analyze Each Option A. Incorrect - It is not a form of group life insurance. B. Incorrect - Premiums are usually based on combined ages but not specifically the average age. C. Incorrect - This describes a "survivorship" or "second-to-die" policy, not a joint life policy. D. Incorrect - This is more characteristic of survivorship policies used for estate planning.

Explanation

1. Identify the Definition of Joint Life Policy<br /> A joint life policy typically pays out upon the first death among the insured individuals, not after the last insured's death.<br /><br />2. Analyze Each Option<br /> A. Incorrect - It is not a form of group life insurance.<br /> B. Incorrect - Premiums are usually based on combined ages but not specifically the average age.<br /> C. Incorrect - This describes a "survivorship" or "second-to-die" policy, not a joint life policy.<br /> D. Incorrect - This is more characteristic of survivorship policies used for estate planning.
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