Can Creditors Reach Life Insurance Proceeds? 
Creditors can not reach life insurance proceeds to pay off the debts of the deceased insured person unless the beneficiary of the policy was not a person . I.e. . If the insured named his/her `` estate '' as the beneficiary , then the policy proceeds go through probate , giving creditors for the deceased , access to those funds . If the beneficiary is a person , the life insurance proceeds do not usually go through probate , but directly to that person . Creditors can not reach the money that went to the beneficiary unless the beneficiary shared the debt with the deceased . 