If you are the beneficiary of a life insurance policy and you have a wage garnishment out against you, what can be garnished depends on the rules of the state. Federal law sets limits on what can be garnished, but states can add to those limitations. Consult an attorney if your wages are being garnished and you are set to become the beneficiary of a life insurance policy, or have recently received proceeds of a life insurance policy.
If it is the deceased person who was insured by the life insurance policy whose wage were being garnished, or who owed substantial debt, the money received by the beneficiary is usually safe from creditors to whom the deceased owed money. If the insured person left his money to his estate, or there were no living beneficiaries on his policy to receive the death benefit, then creditors have access to money left to the estate. But money left to a person as beneficiary belongs to the beneficiary and is not accessible to creditors for the deceased.
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If it is the deceased person who was insured by the life insurance policy whose wage were being garnished, or who owed substantial debt, the money received by the beneficiary is usually safe from creditors to whom the deceased owed money. If the insured person left his money to his estate, or there were no living beneficiaries on his policy to receive the death benefit, then creditors have access to money left to the estate. But money left to a person as beneficiary belongs to the beneficiary and is not accessible to creditors for the deceased.