Can Debt Collectors Take Life Insurance? 
If you are the beneficiary of a life insurance policy , and you owe debt , debt collectors may go after your life insurance proceeds . State law places some limits on the amount they can take . If you are the beneficiary of a life insurance policy and the deceased owed debt at the time of death , debt collectors can not take your life insurance unless you were a co-signer for that debt . They can also go after the life insurance money if there was no beneficiary , but if the death benefit went to the estate . 