L&HOhiomedium
What is the primary effect of a spendthrift clause in an Ohio life insurance settlement option?
AIt allows the insured to accelerate the death benefit
BIt permits the insurer to deny payment of the death benefit
CIt converts the death benefit to a single lump-sum payment by default, overriding any installment settlement option the beneficiary previously elected
It shields proceeds held under a settlement option from beneficiary's creditors and from voluntary assignment
Why this is the answer
A spendthrift clause attached to a settlement option in an Ohio life policy protects unpaid installments from the beneficiary's creditors and bars voluntary assignment or commutation, preserving income for the beneficiary.
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