Which clause protects the proceeds of a life insurance policy from creditors after the death of the insured?

The spendthrift clause is designed to protect the proceeds of a life insurance policy from creditors after the insured's death. This clause restricts the beneficiary’s ability to transfer or assign their interest in the policy proceeds, effectively providing a layer of protection against creditors who might seek to claim those funds to satisfy debts. By ensuring that the insurance proceeds remain sheltered from creditors, the spendthrift clause allows the funds to be used as intended, typically to provide financial support for the beneficiary.

The other choices do not fulfill this protective role. The term clause relates to the duration and conditions under which a term life insurance policy remains effective. The suicide clause addresses the circumstances under which a death by suicide may lead to a denial of claims, typically within the first couple of years of the policy. The waiver clause generally pertains to the waiver of premium payments under certain conditions, such as the disability of the policyholder. None of these clauses provide the same level of protection against creditor claims as the spendthrift clause does.