Spendthrift trust clause

The spendthrift trust clause is a commoly used legal clause in life insurance policies. The purpose of the spendthrift provision is to help protect beneficiaries from the claims of their creditors. More precisely, it shelters life insurance proceeds that have not yet been paid to a named beneficiary from the claims of either the beneficiary’s or policyowner’s creditors.

Ironically, when it comes to eternal life insurance, the insurer, God, actually is one and the same Creditor who makes claims against those in debt. In sinning against God, we have placed ourselves in the most precarious position of owing an eternal God a perfect record of righteousness that we cannot possibly provide. Scripture portrays us as debtors who cannot pay our debts (Psalm 49:7-9, Matthew 6:12, Luke 19:15-30). In dealing with an eternal debt to an eternal Creditor, we face eternal imprisonment. God provided his own Son, Jesus Christ, as the collateral for our debt, whose atonement satisfied our indebtedness to the Creditor (Psalm 103:1-4, Romans 3:22-25, 4:6-8, 24-25, 8:33-38, Ephesians 1:7, Colossians 1:13-14, 22, 2:14).

Christ, the policyowner’s diligence to pay the premiums on his life insurance policy insures the protection of his beneficiaries, defeats the forces of adversity, and satisfies his Father’s honor. Christ’s injunction to us is, (Luke 17:10) “So you also, when you have done all that you were commanded, say, ‘We are unworthy servants; we have only done what was our duty.'”

Charles Spurgeon observed,

“Covenant theology glorifies God alone. There are other theologies abroad which magnify men; they give him a finger in his own salvation, and so leave him a reason for throwing up his cap and saying, ‘Well done I;’ but covenant theology puts man aside, and makes him a debtor and a receiver. It does, as it were, plunge him into the sea of infinite grace and unmerited favour, and it makes him give up all boasting, stopping the mouth that could have boasted by filling it with floods of love, so that it cannot utter a vainglorious word. A man saved by the covenant must give all the glory to God’s holy name, for to God all the glory belongs. In salvation wrought by the covenant the Lord has exclusive glory.” (The Metropolitan Tabernacle Pulpit: Sermons Preached and Revised, Vol. XX, p. 443)

We are saved from God, through God, for God.

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Covenant theology