Who does the spendthrift clause in a life insurance policy primarily protect?

The spendthrift clause in a life insurance policy is designed primarily to protect the beneficiary. This clause prevents the beneficiary from transferring or assigning their rights to the policy proceeds before they receive the benefits. It restricts creditors from accessing the death benefit to satisfy debts of the beneficiary. By doing so, the spendthrift clause ensures that the intended financial support from the policy reaches the beneficiary without external interference, thereby securing their financial future in the event of the policyholder's death.

This protective measure is particularly important because it allows the beneficiary to use the death benefit as intended by the policyholder, ensuring that the funds are available for their intended purpose, whether that is to cover living expenses, pay off debts, or invest for future needs.