Creditors cannot go after the life insurance payout to pay the debts of the deceased insured person, as long as the beneficiary or beneficiaries who are receiving the life insurance proceeds are actual people. Life insurance bypasses probate, so the creditor does not have the opportunity to access the life insurance payout.
If the beneficiary is the insured person's estate, the creditors may be able to go after the life insurance death benefit to pay the debts of the insured.
If the beneficiary is the one who has the debts, then the creditors can go after the life insurance payout. This is also true if the beneficiary shared a debt with the deceased.
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If the beneficiary is the insured person's estate, the creditors may be able to go after the life insurance death benefit to pay the debts of the insured.
If the beneficiary is the one who has the debts, then the creditors can go after the life insurance payout. This is also true if the beneficiary shared a debt with the deceased.