Which term describes the protection that beneficiaries have from creditors of the insured?

The term that describes the protection beneficiaries receive from creditors of the insured is creditor protection. This principle ensures that the proceeds of an insurance policy are safeguarded from the reach of creditors, meaning that if the insured incurs debts or liabilities, those creditors cannot claim the death benefits or other policy proceeds meant for the beneficiaries. This protection is crucial for ensuring that the financial legacy the insured intended for the beneficiaries remains intact, even in the event of the insured’s financial troubles or legal issues.

Other terms like trustee protection or asset protection do not specifically refer to the protection granted to beneficiaries in the context of insurance policy proceeds from creditors. Beneficiary protection is a broader term that might imply safeguarding beneficiaries’ rights, but it does not directly connote the specific creditor-related aspect that creditor protection covers.