What type of life insurance covers two people and pays benefits only upon the second person's death?

Survivorship life insurance is specifically designed to provide coverage for two people, typically spouses, and the policy pays out a death benefit only after the second insured person passes away. This type of insurance is often used as a financial planning tool, particularly to provide funds for estate taxes or to leave a legacy for heirs.

The main advantage of survivorship life insurance is that it usually offers lower premiums than two separate policies because the benefit is delayed until the second death occurs. This makes it an attractive option for couples who want to ensure financial security for their beneficiaries without incurring the higher costs associated with individual life insurance policies.

Other types of insurance mentioned, such as family life or spousal life, may provide benefits upon the death of one insured person, but survivorship life is distinct in that the benefit is contingent on the death of both insured individuals. Joint life insurance typically pays out on the first death, while surviving spouses would not benefit from a policy designed exclusively for the second death.