Benefit of Insurance Clause: A Legal Safeguard for Policyholders
A benefit of insurance clause, also known as a “loss payable clause,” is a provision in an insurance policy that specifies who will receive the benefits or proceeds of the policy in the event of a covered loss. For example, in a life insurance policy, the benefit of insurance clause typically designates the policy’s beneficiary, who will receive the death benefit upon the insured’s death.