Which provision in life insurance policies protects the policyowner from creditors?

The spendthrift clause is designed to protect a life insurance policy's death benefit from being claimed by the policyholder's creditors. This provision restricts the beneficiary's ability to access the proceeds of the policy until a certain time period or event has passed, thus shielding the funds from the policyowner's creditors. It ensures that the benefits are paid directly to the beneficiary without being subject to debts that the policyowner may owe, which helps to secure the financial well-being of the beneficiary.

Other provisions, such as the waiver of premium, incontestable clause, and free look provision, serve different purposes. The waiver of premium allows the policyowner to stop paying premiums under certain conditions, the incontestable clause prevents the insurer from voiding a policy after a specified period, and the free look provision allows policyholders to review their policy for a limited time and return it for a full refund if they choose. None of these provisions offer the same level of protection against creditors as the spendthrift clause does.