If a policy covers two lives but only pays out upon the last death, what is it called?

The policy that covers two lives but only pays out upon the last death is known as a Last Survivor Policy. This type of insurance is designed to provide a death benefit only after the second insured has passed away, making it particularly useful for estate planning purposes or to ensure that dependents or beneficiaries are financially supported after both insured individuals are deceased.

In a Last Survivor Policy, premiums are typically lower than purchasing two individual life policies, because the insurer is only required to pay out once both insured persons have died. This can be beneficial for couples or business partners who want to ensure their heirs are protected financially in the event of both parties passing away.

In contrast, a Joint Life Policy would pay out upon the death of the first insured, which is not the case in this scenario. A Family Plan Policy usually includes coverage for multiple family members but may not follow the same rules as a Last Survivor Policy. A Payor Provision is a feature that ensures that premiums will be waived if the policyholder passes away before the insured reaches a certain age, and it does not relate directly to the scenario described in the question.