Can Creditors Claim Life Insurance Benefits? 
If the creditor is going after life insurance proceeds that have been left to the insured person 's estate , and is doing so to pay off bills left by the deceased , then the creditor can claim life insurance benefits during probate . If the beneficiary of the life insurance policy is a person , then creditors can not take the death benefit away from the beneficiary . There may be some exceptions , such as if the beneficiary was a co-signer to the debt . 