Which policy pays benefits upon the death of the second insured in a joint life arrangement?

The correct answer is a joint and last survivor policy, which is specifically designed to pay out benefits upon the death of the second insured in a joint life arrangement. This type of policy insures two lives and provides a death benefit when the second person passes away, making it particularly beneficial for couples who wish to ensure that the surviving partner has financial support even after the first individual has died.

In contrast, a joint life policy typically pays the benefit upon the first death of the individuals covered under the policy. This means that it would not satisfy the requirement of paying after the second insured dies. The other options, such as a joint and survivor annuity and a whole life policy, serve entirely different functions. A joint and survivor annuity is focused on providing income for two individuals, continuing payments until the last person dies, but it does not function as a death benefit policy. A whole life policy, while it may provide a death benefit, does not specifically cater to the joint arrangement of two insured individuals and wouldn’t necessarily cover both under the same terms.

Therefore, the joint and last survivor policy stands out as the correct option for addressing the scenario presented.