Is Cash Value Life Insurance Protected From Creditors? 
Life insurance is personal property . Permanent life insurance generally has cash value . But it is one of the unique assets that are creditor proof for most states , i.e. not all . Consider the exposure of small business to the claims of creditors . Holding a cash value life insurance policy personally and not in the business could give access for liquidity , death benefit for beneficiaries and be creditor proof in most states . 