Is Life Insurance Exempt From Creditors In South Carolina? 
Life insurance that is left to a person as beneficiary is usually exempt from creditors in South Carolina . If the beneficiary has co-signed for an unpaid debt at the time the Insured dies , then the creditors may be able to go after the insurance proceeds . And if the beneficiary is the Insured 's estate , creditors will try to collect their due from the insurance proceeds in the estate . But a person who receives a life insurance death benefit is not liable for the debts of the Insured . 