What is a primary feature of joint life insurance?

Joint life insurance is designed to cover two individuals under a single policy, and one of its key features is its provision of benefits that can be utilized for specific financial needs upon the death of one of the insured individuals. The primary feature is that it can provide funds for the surviving partner or policyholder to buy out the deceased partner's share in a business or partnership. This is particularly beneficial in business arrangements where the remaining partner may need to retain control over the business without additional financial strain.

The benefit is that it creates financial security and protects the interests of the surviving partner, enabling them to fulfill any financial obligations or maintain business operations after the death of their partner. Hence, the joint life insurance policy acts as a financial tool that helps in the smooth transition of ownership and management of the business.

In contrast, other options do not accurately capture the primary function of joint life insurance. For instance, covering two insureds under separate policies would suggest individual coverage rather than a joint arrangement. Using joint life insurance exclusively for estate planning purposes limits its application and ignores its broader uses, such as business partnerships. Lastly, stating that it is only available as term life insurance implies a restriction that does not hold, as joint life policies can also be permanent or whole life insurance