What is the primary feature of a joint life insurance policy?

A joint life insurance policy is specifically designed to provide coverage for two or more individuals under a single policy. The primary feature of this type of policy is that it pays a death benefit when the first insured individual passes away. This characteristic is essential for joint policies, as it serves purposes such as providing financial support to the surviving party or fulfilling obligations such as mortgage payments or other debts.

The benefit structure of a joint life insurance policy emphasizes its practicality for couples, business partners, or any two individuals who wish to ensure financial protection for each other in the event of one’s death. The policy can be an effective tool for estate planning and risk management.

While the other characteristics mentioned may apply to various insurance policies, they do not embody the primary purpose of a joint life insurance policy in the same manner. The emphasis on the first death benefit payout clearly distinguishes joint life insurance from other life insurance types.