Does Life Insurance Go To Debt? 
Life insurance does not go to the debt of the person who died , unless the life insurance proceeds go to his/her estate . If the money goes to the estate , debt collectors will collect from it . Another way life insurance might go to pay off debt incurred by the Insured , is if the beneficiary was a co-signer for the Insured 's debt -LRB- in community property states , a spouse may need to pay off the debt even if their name was not on the contract -RRB- . If not a co-signer -LRB- or not the surviving spouse in a community property state -RRB- , the beneficiary does not need to pay off the debt of the Insured , unless they want to . If it is the beneficiary who has debts and receives a life insurance death benefit , each state has their own limitations on whether or not debt collectors can come after your life insurance proceeds . This website tells about the debt collection laws from some states : WEBSITELINK 