Is Cash Value Life Insurance Protected From Creditors? 
Yes , life insurance is one of a very few forms of property that is inherently protected from creditor claims . But in many states , the protection is limited in scope and/or by relatively small amounts . For example , in California , the protection limit is less than $ 10,000 , while in Hawaii and Florida there is n't a limit . Asset protection is a complex area so check with local tax and legal experts who can advise you . 