facility of payment clause
- A provision in an insurance contract that allows the insurance company to distribute the death compensation to a family member of the policyholder or to any individual who has incurred costs associated with the policyholder's passing, such as funeral expenses
- The facility of payment clause in the insurance policy allowed the funeral costs to be directly covered by the death benefit.
- Under the facility of payment clause, the insurance company decided to pay the death benefit to the deceased's brother who had covered all funeral expenses.
- Because of the facility of payment clause, the insurance company was able to reimburse family members for the costs they incurred due to the policyholder's passing.
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