Can Creditors Take Your Life Insurance? 
There may be two questions here , death benefit proceeds and cash values in life insurance policy . Every state jurisdiction is different and you should seek legal counsel before deciding the best course of action . But in general terms , unless your domiciled state says otherwise or has cash value limitations , you personally owned life insurance cash values are protected . Death benefit proceeds received before or after six months of bankruptcy filing could be at risk and characterized as bankruptcy property . 