What happens to the cover of a joint life last survivor policy after the first death?

In a joint life last survivor policy, the coverage is specifically designed to pay out upon the death of the second insured individual, meaning that the policy remains in force until that point. When the first insured person passes away, the total coverage does not reduce. Instead, it continues to provide coverage for the surviving individual until their death.

Therefore, stating that the cover reduces is not accurate. The correct concept here is that the total coverage amount will remain unchanged after the first death, ensuring that the surviving policyholder retains the same level of financial protection until the conclusion of the policy following their own death. The policy's primary purpose is to provide a benefit upon the death of the last surviving party, thereby maintaining the initial coverage amount throughout the term of the policy.