A spendthrift clause applied to policy proceeds held under a settlement option is intended to:

Explanation

A spendthrift clause keeps proceeds that the insurer is paying out over time out of the reach of the beneficiary's creditors and prevents the beneficiary from assigning or hastily withdrawing the entire amount, protecting an unsophisticated or vulnerable beneficiary. It does not speed up payment, increase the benefit, or allow free borrowing. The clause works only while the insurer holds the funds under an installment-type settlement option, not after a lump sum is paid.