What is the purpose of joint life insurance?

Joint life insurance is specifically designed to provide coverage for two individuals under a single policy. The primary purpose of this type of insurance is to pay out a death benefit upon the death of the first insured person. This can be particularly beneficial for couples or business partners, allowing for financial support at a critical time without the need to have multiple separate policies.

The feature that distinguishes joint life insurance is that it offers a death benefit immediately upon the passing of either insured party, which can help to address immediate financial needs, such as paying off debts or providing living expenses for the surviving party. This design inherently makes it distinct from policies that only cover one individual or that require both insured parties to pass away before any benefits are paid.

Therefore, the correct answer highlights the coverage's dual nature while emphasizing its focus on the first death, making it a valuable financial tool for those in specific situations.