Is Life Insurance Exempt From Creditors In Kentucky? 
Life insurance must be distributed to a beneficiary and not the estate to remain exempt from the deceaseds creditors . The beneficiaries creditors would be able to go after the life insurance proceeds . Most retirement accounts and cash value within a life insurance policy are exempt from creditors and can be retained , even through bankruptcy . One way creditors sometimes get to the funds is if life insurance proceeds are deposited into what was a joint checking account that the creditor had access to . While a person may be able to have the funds returned through legal proceedings , it is often best to close the joint account and open a new account . 