Who does the spendthrift clause in a life insurance policy protect

The spendthrift clause protects life insurance proceeds from creditors. The beneficiary's creditors are prohibited from claiming any of the policy's benefits before the beneficiary is paid.

Who is a spendthrift clause?

A spendthrift clause refers to a clause creating a spendthrift trust which limits the ability of assets to be reached by the beneficiary or their creditors.

Whose life is covered on a life insurance policy that contains a payor benefit clause?

As mentioned, a payor benefit provision is designed to protect the child of the policyholder in the event the policyholder becomes disabled, dies, or is no longer able to pay for policy premiums.

What does a life insurance policy guarantee to the stated?

A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured dies in exchange for the premiums paid by the policyholder during their lifetime.

What does the entire contract clause in a life insurance policy refer to quizlet?

The entire contract provision is also referred to as the entire contract clause. This provision states that the policy and a copy of the application constitutes the entire contract between the insurer and the insured. A copy of the life insurance application is attached to the policy.