Final answer:
Survivor life insurance is most appropriate for providing funds to pay taxes and handle administrative expenses for a deceased's estate. It pays out after both policyholders pass away, which aligns with when such costs need to be addressed.
Step-by-step explanation:
The policy best suited to provide funds to pay for taxes due and other administrative expenses related to a deceased's estate is C. Survivor life insurance, also known as second-to-die insurance. This policy is specifically designed to cover estate tax liabilities and other expenses that may arise after both policyholders have passed away, ensuring that their heirs or the estate has the necessary funds to cover these costs.
Survivor life insurance, unlike individual policies such as Modified life insurance or An endowment at age 65, pays out after the second policyholder dies, which often coincides with when estate taxes and expenses need to be settled. Joint life insurance could be suitable in some situations, but typically, it is intended for providing benefits after the first policyholder passes.