Does Life Insurance Go Towards Debt?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaLife insurance death benefit proceeds are paid to the beneficiary of the life insurance policy. Those proceeds are generally free from taxation, so the beneficiary may use the money as they see fit. Paying down your debt is a noble use of the money and generally recommended by most advisers.Answered on July 19, 2013+01+1 this answer
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63333 POINTSview profilePeggy MaceMost of the U.S.If the life insurance policy is left to the estate of the insured person, and the deceased insured person had unpaid debt, the creditors to whom the debt is owed may try to collect their payments from the life insurance proceeds in the estate. If life insurance proceeds are left to a person rather than the estate, it is up to the beneficiary whether they want to pay those debts.Answered on July 20, 2013flag this answer
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