Function

• Prior to the death of the named insured, only the policy holder (who isn't always the named insured) can alter the life insurance policy. Unless the policyholder is a parent and the named insured is a minor, then both the named insured and the policyholder must be involved in any alteration of the policy.
  
  

Policyholder Debts

• Any creditors of the named insured have a credit against the named insured, not against the named insured's beneficiary, who is the actual stakeholder of the life insurance policy. The cash benefits are not considered an asset of the policyholder or the named insured and cannot be attached in any legal proceedings.
  
  

Whole Life

• Unlike term life insurance, which has no cash value until the named insured dies, whole life has a "cash value account, " which may only be attached by creditors in the event that the named insured (who must also be the policyholder) accesses the cash value prior to death. Otherwise, the beneficiary remains the stakeholder of the cash value account.