The type of life policy that covers two people and pays upon the death of the last insured is the survivorship life policy, or, to be more precise, we are talking here about the Last Survivor Life Insurance.
If two or more people decide to pay for that type of insurance, once one of them dies, the other one will get the money from the deceased person's death. It is a good type of insurance for spouses, especially older ones, because the other person will be insured.