QFA Life Assurance Practice Test

A dual life policy held by a married couple is legally presumed to be held as joint tenants. This means that both parties have equal ownership of the policy, and it includes the right of survivorship. In the context of a life insurance policy, this arrangement allows the surviving spouse to automatically inherit the policy benefits without the need for probate.

Joint tenancy implies that when one insured person passes away, the other person becomes the sole owner of the policy, ensuring that the insurance proceeds go directly to them. This arrangement is common among married couples because it simplifies the transfer of assets and provides immediate access to funds needed for financial security after the loss of a partner.

Understanding the nature of joint tenancy in the context of a dual life policy is important as it impacts how the policy is administered and the legal implications for beneficiaries.