Can A Lien Be Placed On Life Insurance? 
NO ... a lien can not be placed on Life Insurance . UNLESS you have given or using the cash value and/or the policy as collateral . If the loan which the collateral is being used to secure gets defaulted on , then yes , the collector can take the policy/cash value to pay off any balance . Life Insurance by nature is outside the reach of creditors such as your 401 -LRB- k -RRB- . 