What Is The Spendthrift Clause In Life Insurance? 
The word , `` spendthrift '' means someone who spends money in an extravagant , irresponsible way . The spendthrift clause in life insurance protects the irresponsible beneficiary from having creditors pounce on their life insurance proceeds the minute they are received . This might be done by the life insurance company paying that beneficiary in installments . 