When are death proceeds paid out in a joint life policy?

In a joint life policy, death proceeds are paid out when the first insured dies. This type of policy covers two lives, and it is designed to provide a benefit upon the death of one of the insured individuals. The primary function of this policy is to pay the death benefit to the beneficiaries at the moment one of the insured passes away.

Once the first insured's death occurs, the policy terminates, and the beneficiaries receive the payout. Such a structure can be particularly beneficial for couples or business partners who want to ensure that a surviving partner is financially protected in the event of a death.

Payouts do not happen at maturity or upon renewal, as those scenarios pertain to how term or whole life policies typically function, and in the case of joint life policies, there isn't a specified 'policy term' that leads to a payout unless one of the insured individuals dies first.