Is Life Insurance Subject To Creditor Claims? 
If it is the Insured person and Policy Owner who has the claims against them , and they die and leave the life insurance proceeds to a beneficiary , the beneficiary does not have to pay the claims of the Insured unless they co-signed for that debt . If there is no beneficiary and the life insurance money ends up in the estate , creditor claims can be filed during probate . If it is the beneficiary who has the claims against them , it depends on the state of residence as to whether a claim can be filed against the beneficiary 's life insurance proceeds , and/or how much of the death benefit is subject to creditor claims . 