Co-Founder, Coastal Financial Partners Group, California
It depends on the state and how the life insurance is owned.
Life insurance is one of a very few forms of property that is inherently protected from creditor claims. But in many states, the protection is limited in scope and/or by relatively small amounts. For example, in California, the protection limit is less than $10,000, while in Hawaii and Florida there isn't a limit.
Asset protection is a complex area of the law so check with an experienced attorney who can advise you.
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Life insurance is one of a very few forms of property that is inherently protected from creditor claims. But in many states, the protection is limited in scope and/or by relatively small amounts. For example, in California, the protection limit is less than $10,000, while in Hawaii and Florida there isn't a limit.
Asset protection is a complex area of the law so check with an experienced attorney who can advise you.