First-to-die life insurance is a joint policy on two insureds that pays the death benefit upon the first death and then generally terminates. The design provides immediate liquidity to retire debt,replace income, or fund a buy-sell agreement for the survivor. Compared with purchasing two individual policies, first-to-die can deliver a lower premium for the specific risk of the first death, but it does not provide continuing coverage on the surviving insured unless a continuation rider is included. It contrasts with second-to-die (survivorship) coverage, which pays only at the second death and is often used for estate-tax liquidity or legacy goals.

Couples use first-to-die to retire mortgages or replace income at the first death. In closely held businesses, it can fund buy-sell obligations immediately for the survivor. Advisors compare cost versus two single policies and check for continuation riders; underwriting evaluates joint risk and insurable interest.