Which policy pays when the first of two insureds dies?

The policy that pays out upon the death of the first of two insureds is the joint life policy. This type of policy covers two individuals under a single contract, and it is specifically designed to provide a death benefit upon the passing of either insured person. This feature distinguishes joint life from other types of policies.

In contrast, a survivorship or second-to-die policy only pays benefits after both insured individuals have passed away. Thus, it serves a different purpose, typically being structured for estate planning rather than immediate financial support in the event of the first insured's death.

Family policies usually encompass coverage for the entire family, including parents and their children, but they do not specifically focus on the payout upon the first insured's death. Such policies often operate more like a combination of individual policies under one contract.

Juvenile life policies are designed for minors and provide coverage for children, but similar to family policies, they do not involve the specific arrangement or intention to pay upon the death of the first of two insured individuals.

Understanding the different types of life insurance policies helps in selecting the appropriate coverage that meets the insured’s needs and goals.