Does Life Insurance Pay Debts? 
Does life insurance pay debts ? NO ! Depending on the kind of policy you have , if you have Whole Life you can use the Cash Value in the policy to pay debts if you want . But if there is a life insurance policy in place at the time of death of the insured , the insurance company will pay the death Benefit to the Beneficiaries . Then the Beneficiaries may use the money for anything they choose . If they choose to pay debts with the money , they may do so . 