The answer to this questions depends on a few specifics. In many states, a creditor cannot take the cash values of a life insurance policy from a policy owner (this is not true of all states, however).
For death benefit, as long as the death benefit is paid to a beneficiary who is not a party to the loan for which the creditor is trying to collect money, the creditor would not be able to take life insurance proceeds, unless those proceeds were paid to the policy owner's estate, at which point in time they would need to be distributed through the probate process, and the creditor would have the ability to file claim against the estate in an attempt to recover monies owed.
.JPG){kind=avatar}
For death benefit, as long as the death benefit is paid to a beneficiary who is not a party to the loan for which the creditor is trying to collect money, the creditor would not be able to take life insurance proceeds, unless those proceeds were paid to the policy owner's estate, at which point in time they would need to be distributed through the probate process, and the creditor would have the ability to file claim against the estate in an attempt to recover monies owed.