Question

When there is a named beneficiary on a life insurance policy, the death benefits:

A. Are directed to a trustee if the insured has any outstanding debts.
B. Are paid directly to the insured's creditors, with any remaining balance forwarded to the beneficiary.
C. Are paid directly to the beneficiary, minus any debt claims by the insured's creditors.
D. Are paid directly to the beneficiary without interference from the insured's creditors.

Answer 1

Death benefits are paid directly to the beneficiary without interference from the insured's creditors.

Step-by-step explanation:

When there is a named beneficiary on a life insurance policy, the death benefits are paid directly to the beneficiary without interference from the insured's creditors.