A life insurance policy written on one contract for two people in which it is payable upon the first death is called?

A life insurance policy that covers two individuals under one contract and pays out upon the first death is referred to as a joint life insurance policy. This type of policy is specifically designed for situations where two people, often spouses or partners, want to ensure that there is a death benefit payable upon the death of either individual.

The significance of a joint policy is that it provides a financial benefit to the surviving party immediately upon the death of the first party, which can be crucial for covering immediate expenses, debts, or loss of income. This contrasts with other types of policies, such as survivorship policies, which do not pay out until both parties have passed away. Thus, the joint life policy is a practical option for individuals looking to provide for their loved ones in the event of an untimely death.