What type of life policy covers two lives and pays the face amount after the first one dies?

A Joint Life Policy is specifically designed to cover two individuals, typically a couple or partners, and pays out the face amount when the first insured person passes away. This type of policy is often utilized for financial planning, particularly in situations involving business partnerships or spouses, ensuring that surviving beneficiaries receive a payout that can assist with ongoing financial obligations or assist in estate planning after the first death.

Survivorship Life Policies, while related, work differently; they pay the death benefit only after both insured parties have passed away, making them distinct from Joint Life Policies. Convertible Term Policies relate to term insurance that can be converted to a permanent policy but do not specifically cater to two lives with an immediate payment upon the first death. Family Policies encompass coverage for multiple family members but do not specifically dictate that the payout occurs upon the first death of one individual.