What type of life insurance pays benefits only upon the death of the last insured person?

Survivorship life insurance, also known as second-to-die insurance, is specifically designed to provide a death benefit only after both insured individuals have passed away. This type of policy can be particularly advantageous for couples or business partners who wish to ensure that their beneficiaries receive a payout only after both of them have died. It helps in planning for estate taxes or providing financial support for heirs after the final insured person passes away.

In contrast, term life insurance pays benefits only if the insured dies during a specified term. Whole life insurance provides a death benefit at any time as long as premiums are paid and has a cash value component. Universal life insurance also pays out upon death but has flexible premiums and investment options. None of these other types of insurance stipulate that benefits are only payable upon the death of the last insured person, which is the defining feature of survivorship life insurance.