Life License Qualification Program (LLQP) Practice Exam

When are benefits paid under a Joint Life and Survivor policy?

1. When policy reaches maturation

2. Upon death of the first insured

3. Upon death of the last insured

4. When one insured becomes disabled

The correct answer is: Upon death of the last insured

In a Joint Life and Survivor policy, benefits are specifically structured to provide ongoing coverage and support to the surviving partner after the death of one of the insured individuals. This type of policy is designed to ensure that when the first insured person passes away, the surviving insured continues to have coverage without the policy necessarily being terminated. The crucial point here is that the death benefit is ultimately paid upon the death of the last insured individual. This means that while the policy provides some benefits or coverage when the first insured dies, the main payout or final benefits are available only after the last insured has died. Considering the context of the other options, while benefits may be accessible at different points (such as maturity of the policy or upon the disability of one insured), they do not represent the fundamental structure of how benefits work specifically in a Joint Life and Survivor policy, which focuses on the last surviving insured's death as the key moment for the benefits payout.