Which type of life insurance covers both you and your spouse under one policy?

Survivorship life insurance, also known as second-to-die insurance, is designed to cover two lives, typically a couple, under a single policy. This type of policy pays a death benefit only after both insured individuals have passed away. It is particularly beneficial for estate planning purposes, allowing for the transfer of wealth to heirs without the immediate tax burden usually associated with death benefits.

In contrast, the other types of life insurance mentioned do not serve the same function. Universal life insurance provides flexible premiums and death benefits for an individual, while joint life insurance can sometimes be an umbrella term, covering two lives but usually pays out on the first death. Term life insurance covers an individual for a set period and does not offer coverage for both spouses under one policy.