Legal English Dictionary
facility of payment clause
nouna clause in a life insurance policy that allows the insurer to pay some or all of the proceeds of the policy to a relative of an insured party who has died, especially where the relative has expenses to pay following the death (eg funeral expenses etc)The proceeds thereof, when not made payable to a named beneficiary or to a third person pursuant to a facility-of-payment clause, shall not constitute a part of the estate of the individual insured for the payment of his debts.
Synonyms and Other Spellings
- facility-of-payment clause