Which type of life policy covers two lives and pays the face amount after the first one dies?

A Joint Life Policy is specifically designed to cover two individuals under a single policy and pays out the death benefit upon the death of the first insured person. This type of policy is often utilized by couples (such as spouses) or business partners who want to ensure that there is financial protection in the event that one of them passes away.

The key characteristic that distinguishes a Joint Life Policy from other types of life insurance is that it addresses the coverage of two lives within a single contract and focuses on the payout occurring upon the demise of the first insured. This can be particularly beneficial in planning for estate expenses, debts, or providing for surviving family members.

In contrast, Whole Life and Universal Life Policies cover a single individual throughout their lifetime, focusing on permanent coverage and cash value accumulation. Term Life Policies provide coverage for a specified duration, paying out if the insured dies within that term, but they do not specifically cover two lives in the manner that a Joint Life Policy does.