What is a distinguishing factor of a joint life policy?

A distinguishing factor of a joint life policy is that it pays benefits upon the first death of any covered individual. This type of policy typically covers two or more individuals, and the benefit is triggered when one of the insured parties passes away. This feature is particularly useful in various situations, such as for couples or partners who wish to ensure that the surviving party has financial support after one cannot provide that support.

The nature of joint life policies provides a unique aspect compared to other types of life insurance, as most individual policies pay out solely upon the death of one policyholder. Furthermore, joint life policies can serve different purposes, such as providing funds for funeral expenses or settling debts that could burden the surviving individual.

The other options do not accurately reflect the characteristics of a joint life policy. For instance, policies that cover a single individual are individual life insurance products, while the suggestion that joint policies are only for business owners limits their applicability since they can also be used by families or couples. Additionally, while some life insurance products may accumulate cash value, joint life policies typically focus on the death benefit, making cash value accumulation not a defining feature.