Final answer:
The insurance contract in question is a Joint Life policy, which insures multiple parties under one contract and pays out upon the death of any insured person.
Step-by-step explanation:
The type of insurance contract described in the question is a Joint Life insurance policy. This policy insures two or more persons and pays out the death benefit upon the death of one of the insured parties. It contrasts with individual policies like Credit Life, which are tied to a debt and pay off that debt if the debtor dies, and Single premium whole life, which involves a lump sum payment up front. Additionally, Survivorship Life (also known as second-to-die insurance) is similar but pays out after the second person in the policy dies, not the first.
Life insurance is a method of protecting a person from financial loss, whereby policyholders make regular payments to an insurance entity. In the case of cash-value (whole) life insurance, the policy not only provides a death benefit but also accumulates a cash value over time, which can be borrowed against or serve as a savings account for the policyholder's use.