Under section 73 of the Conveyancing and Law of Property Act, the insured can easily create a trust of the life policy taken out by him. Unfortunately, however, problems often occur. Such a statutory trust has in many a case been unwittingly created by the life assured without his ever realising the full consequences of what he had done. The present article discusses how this unwarranted situation can arise (including the different kinds of interests thereby constituted) as well as how the resulting trust may drastically restrict the insured's rights and options under the policy.