Final answer:
A life insurance policy that covers two individuals and pays upon the second individual's death is known as Survivorship Life or Second-to-Die insurance.
Step-by-step explanation:
A life insurance policy that covers two parties but only pays out upon the death of the last party is known as Survivorship Life or Second-to-Die insurance. This type of policy is primarily used in estate planning to provide liquidity for estate taxes and other expenses after both individuals have passed away. Cash-value (whole) life insurance policies, including this type, generally have both a death benefit and a cash value component, which can be accessed by the policyholder during their lifetime.