Which clause protects proceeds from a life insurance policy from the beneficiary's creditors?

The spendthrift trust clause is designed to protect the proceeds of a life insurance policy from creditors of the beneficiary. This clause specifically prevents creditors from accessing the funds intended for the beneficiary, ensuring that the policy proceeds are used for the beneficiary's benefit rather than being diverted to settle debts.

In a spendthrift trust arrangement, the proceeds can only be claimed by the beneficiary at the designated time, protecting those funds from claims by creditors during the beneficiary's lifetime. This is particularly significant for individuals who may be financially vulnerable, as it helps ensure that a life insurance payout remains intact for the intended recipient without the risk of being seized by creditors.

The other options do not specifically address the protection of life insurance proceeds from creditors in the same way that a spendthrift trust clause does. While they may sound similar or relevant, they do not carry the same legal implications regarding the prevention of creditors from accessing the benefits of a life insurance policy.