Which type of insurance policy involves two lives and pays out upon the death of the first?

The type of insurance policy that involves two lives and pays out upon the death of the first is known as a Joint Life policy. This feature is particularly valuable for couples or business partners, as it provides financial protection to the surviving party when one of the insured individuals passes away. The payout can help cover expenses such as debts, mortgage payments, or other financial obligations, ensuring stability for the survivor.

In contrast, a Survivorship Life policy, while involving two individuals, only pays out after the death of the second insured, serving more as an estate planning tool than immediate financial support. Term Life and Universal Life policies, on the other hand, generally cover one individual and focus on providing benefits during a specified term or lifetime, respectively, without the dual-life feature central to Joint Life policies.