Which type of insurance policy pays out upon the death of the last insured individual?

The last survivor policy is specifically designed to provide benefits only upon the death of the last insured individual. This type of policy is often used in estate planning and can help cover estate taxes or provide liquid assets for heirs at the passing of the final insured person. It essentially combines multiple insured individuals under one policy, and the death benefit is triggered only when the last of those insured passes away. This structure can be particularly advantageous for couples or partners who want their beneficiaries to receive a payout after both have died, ensuring that financial obligations are fulfilled after their passing.

While juvenile insurance focuses on insuring the lives of children, credit life insurance is meant to pay off a borrower's debt in case of their death, and family plan policies typically provide coverage for multiple family members but do not necessarily pay out upon the death of the last insured individual, they can provide benefits at various stages of life or upon the death of any covered individual.