Main Answer:
Joint life insurance involves a single contract covering two people, with benefits paid upon the first insured person's death. c. joint
Therefore, the correct answer is c. joint.
Step-by-step explanation:
In the realm of life insurance, a policy written on one contract for two people, payable upon the first death, is termed a "joint" life insurance policy. This type of policy combines coverage for two individuals, making it distinct from individual policies that typically pay out upon the death of the insured party. Joint life insurance serves as a financial safety net for couples, ensuring that the surviving partner receives the policy benefits upon the demise of the first insured person.
Such policies are structured to provide a payout upon the initial death within the covered pair. The concept behind joint life insurance is rooted in shared financial responsibilities, aiming to protect the surviving partner from potential economic challenges in the absence of the other. This arrangement is particularly common among spouses or business partners, where the financial interdependence is significant.
Joint life insurance policies are valuable for couples who rely on each other's income and share financial obligations. The payout can be used to cover outstanding debts, funeral expenses, or any financial gap resulting from the deceased partner's income. It provides a practical means for securing the financial future of the surviving individual, offering peace of mind during challenging times.
Therefore, the correct answer is c. joint.