The type of multiple protection coverage that pays on the death of the last person is called what?

The term that refers to a type of multiple protection coverage that pays out upon the death of the last insured individual is known as a survivorship life policy. This kind of policy is designed specifically for two individuals, typically spouses, where the death benefit is not paid until both insureds have passed away. This makes it particularly useful for estate planning purposes, as it provides a death benefit that can cover estate taxes or provide an inheritance for heirs after both individuals are deceased.

In contrast to joint life policies, which pay a benefit upon the death of the first insured, survivorship life policies only trigger a payout after the second individual has died. This distinction is crucial for understanding the financial planning implications and the specific circumstances under which the policy would provide benefits.