Joint Life Policy

A joint life policy is a type of life insurance policy that covers multiple individuals under a single policy. The policy pays out the sum assured upon the death of any one of the covered individuals. This type of policy is commonly taken by firms to provide financial protection in the event of the death of one or more partners or employees. Let's discuss the options given in the question and understand why the correct answer is option 'D'.

All the partners jointly
- This option suggests that the joint life policy is taken on the lives of all the partners of the firm.
- In this case, the policy would pay out the sum assured upon the death of any one of the partners.
- This ensures that the surviving partners have financial protection in case of the death of a partner, which can help cover any business liabilities or provide for the deceased partner's family.

All the partners severely
- This option suggests that the joint life policy is taken on the lives of all the partners severely.
- It seems that there might be a typographical error in this option, as the word 'severely' does not make sense in the given context. It is likely meant to be 'severally', which means individually or separately.
- If the policy is taken on the lives of all the partners severally, each partner would have their own policy, and the sum assured would be paid out upon their individual deaths.
- This would provide individual financial protection to each partner's family or beneficiaries.

On the life of all the partners and employees of the firm
- This option suggests that the joint life policy is taken on the lives of both the partners and employees of the firm.
- In this case, the policy would pay out the sum assured upon the death of any one of the covered individuals, whether they are partners or employees.
- This type of policy provides comprehensive coverage for all individuals associated with the firm, ensuring financial security for their families or beneficiaries.

a and b
- Option 'D' states that the correct answer is a combination of options 'a' and 'b'.
- This means that the joint life policy is taken on the lives of all the partners jointly, as well as all the partners individually (severally).
- This ensures that both the collective interests of the partnership and the individual interests of each partner are protected through the policy.

Overall, option 'D' is the correct answer as it captures the comprehensive nature of a joint life policy taken by a firm. It covers all the partners jointly and severally, providing financial protection for both the partnership and the individual partners.