What is last survivor life insurance designed to do?

Last survivor life insurance is specifically structured to pay a death benefit upon the second death of the insured individuals. This type of policy is often utilized in situations where it is important to leave a financial legacy or cover estate taxes after both spouses or partners have passed away.

Typically, it is purchased by couples or partners who want to ensure that their heirs receive a benefit only after both of them are no longer living. This can be helpful for financial planning, as it ensures that the proceeds are available to provide for beneficiaries at a time that can be critical, such as covering inheritances.

The other options do not accurately describe the function of last survivor life insurance. One is aimed at triggering a benefit upon the first death, while another provides coverage to only a single individual, and the last is unrelated to life insurance entirely, focusing instead on offering temporary income.