Peter and Aoife invested in a joint life unit-linked bond. The bond will normally pay out a death benefit

• A. if Peter dies first.
• B. if Aoife dies first.
• C. on the first of them to die.
• D. on the last of them to die.

Answer: (D)

In joint-life policies, there are two common timing options for a death benefit: it can be triggered at the first death or at the last death. For a joint-life bond designed with a lasting benefit, the payout is typically tied to the death of the last surviving person. This means the death benefit is paid when the second person dies, not when the first one passes away. This structure is often used for estate planning, ensuring the benefit stays invested longer and is delivered to heirs after both lives have ended. So the payout on the death of the second person aligns with the usual design of a joint-life last-survivor arrangement.

Payout on the first death would be an first-to-die setup, which is not the standard for a joint-life bond intended to continue benefits or growth until both lives have ended.