Can Life Insurance Proceeds Be Taken By Creditors? 
Life insurance proceeds can be taken by creditors if the proceeds go into the estate of the deceased insured person . This happens if the beneficiary of the policy is named `` the estate '' or if the persons listed as beneficiaries are no longer alive . If the beneficiary is a living person , the creditors for the deceased can not go after the insurance proceeds from the beneficiary . If it is the beneficiary who owes debt , creditors may try to access the life insurance money that the beneficiary was left . 