Massachusetts Life Producer Practice Exam

When are death proceeds paid in a joint life insurance policy?

1. When the policy matures.

2. When the first insured dies.

3. Upon the second insured's death.

4. At the end of the policy term.

The correct answer is: When the first insured dies.

In a joint life insurance policy, the death proceeds are paid when the first insured dies. This type of policy is designed to provide a benefit upon the death of either party covered under the policy. The key feature is that the death benefit is triggered by the death of the first insured, which differentiates it from other structures like survivor or second-to-die policies, where the benefit is paid only upon the death of the second insured. By focusing on the first insured’s death, joint life insurance addresses the immediate financial needs of the surviving party, such as covering expenses or maintaining living standards after the loss. It is important to understand that options like maturity of the policy or the death of the second insured refer to different types of policies or scenarios, which do not apply to the payment structure of a joint life policy.