First-to-Die Life Insurance

First-to-die life insurance is a type of joint life policy that insures two people (such as spouses or business partners) and pays out the full death benefit to the surviving insured or designated beneficiary when the first person dies. After the payout, the policy typically terminates unless there is an option to convert coverage for the survivor. This policy is most commonly used to replace income, pay off debts, or provide financial support for the surviving partner or to fund business succession agreements. It is distinct from second-to-die (survivorship) insurance, which pays out only after both insureds have passed away.