Definitions of facility of payment clause
a clause in a life insurance policy that allows the insurer to pay some or all of the proceeds of the policy to a relative of an insured party who has died, especially where the relative has expenses to pay following the death (eg funeral expenses etc)
The proceeds thereof, when not made payable to a named beneficiary or to a third person pursuant to a facility-of-payment clause, shall not constitute a part of the estate of the individual insured for the payment of his debts.