Which statement best describes a characteristic of a Last Survivor policy?

A Last Survivor policy is specifically designed to cover two individuals and pays out the death benefit only upon the death of the second insured. This characteristic makes it distinct from other life insurance policies that pay benefits upon the death of the first insured. Such policies are often used in estate planning strategies, particularly for couples, to ensure that sufficient funds are available to cover estate taxes or provide for heirs after both individuals have passed away. This feature aligns with the goal of providing financial security to beneficiaries after the second individual’s death, thus emphasizing the importance of planning around the timing and needs of beneficiaries in a comprehensive estate plan.