Life Insurance Policies According to the Number of Persons Insured

On the basis of number of persons insured in a policy, the policy may be

(i) single life policies, and

(ii) multiple life policy

(i) Single Life Policies

Under single life policies, only one individual is insured. It is not necessary that the policy should be issued in one’s own life, it may be in other’s life; but the fact is that this policy insures only one life. The policy amount is payable only when the assured event occurs.

(ii)Multiple Life Policies

In this policy more than one life is insured. It may be

(a) Joint Life policy, or
(b) Last Survivor Policy

(a) Joint Life Policy

This policy covers two or more lives and the policy amount is payable on the first death. This is beneficial to the partners of a firm and to a couple.

(b) Last Survivorship Policy

The policy amount is payable at the last death. So long as any one of the insured is alive, no payment is made.