When is the face amount of a joint life and survivor policy paid out?

The payout of a joint life and survivor policy occurs upon the death of the last insured. This type of policy is specifically designed to cover two individuals, typically spouses, and ensures that the surviving partner has financial support after the other partner passes away. Unlike other life insurance policies that may pay out upon the first death (which would apply to traditional joint life insurance), joint life and survivor policies are structured to wait until both insured individuals have passed away before making a payment.

This type of arrangement often serves to protect the financial future of the surviving spouse, providing them with a death benefit after both individuals have died. As a result, it can be an essential planning tool for couples looking to secure their long-term financial stability through their joint life insurance coverage.