What is the common name for a policy designed to insure two or more lives with a standard premium and pays out upon the first death?

A policy that is designed to insure two or more lives with a standard premium and pays out upon the first death is commonly known as a joint life policy. This type of insurance is particularly beneficial for couples or business partners who seek coverage that will provide a financial payout to the surviving party upon the death of one insured individual.

The joint life policy typically features a single premium that covers both insured individuals, making it cost-effective compared to purchasing separate individual policies. Since the policy pays out as soon as one of the insured persons passes away, it is often utilized in planning for financial stability amid the loss of a primary income earner or key partner.

In contrast, term life policies are set up for a specific term and are designed to provide coverage for a limited time, while whole life and universal life policies are permanent forms of insurance that accumulate cash value over time. None of these alternatives usually involve simultaneous coverage for multiple lives with the payout triggered by the first death, as seen with joint life policies.