A life insurance policy can be structured so that death benefits are paid directly to a(n)___________,which means that creditors cannot claim the cash benefits from the life insurance policy.

Question

A life insurance policy can be structured so that death benefits are paid directly to a(n)___________,which means that creditors cannot claim the cash benefits from the life insurance policy. ​

Quizplus · Accepted Answer

A named beneficiary is a person designated to receive the death benefit from a life insurance policy, and this can provide protection against creditors. This means that the cash benefits are paid directly to the named beneficiary and are not probate assets, which are subject to claims from creditors. Therefore, creditors cannot seize the death benefit from a life insurance policy if it is paid directly to a named beneficiary.

A Life Insurance Policy Can Be Structured So That Death