What clause allows payment of benefits to a relative if no designated beneficiary exists?

The facility-of-payment provision is the clause in an insurance policy that allows the insurance company to pay benefits to a relative or other individual if there is no designated beneficiary listed or if the named beneficiary cannot be found. This provision is important as it ensures that the benefits intended for the deceased actually get paid to someone rather than remaining unclaimed or being delayed indefinitely due to the absence of a beneficiary.

This provision typically allows the insurer to determine who is eligible to receive the benefit, often prioritizing close relatives, which helps streamline the benefits distribution process and provides some assurance that the funds will go to someone who is likely to utilize them appropriately.

The other options do not accurately reflect this functionality: the beneficiary allocation clause pertains to how multiple beneficiaries might share benefits, the death benefit clause refers to the specifics of the total amount payable upon death, and the insurance termination clause addresses the conditions under which a policy might end rather than the payment of benefits.