Life insurance in Colorado that is left to a beneficiary who is a person, and not the estate, is protected from creditors. Once it goes to the beneficiary, the only creditors that can try to get it are those the beneficiary owes money to, not who the deceased insured person owed money to.
In the state of Colorado cash values are protected for both bankruptcy and non-bankruptcy claims up to $50,000. Federal bankruptcies are not protected.
However all monies placed into the contract 48 months prior to the claim against the contract owner are not included (i.e. not protected).
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However all monies placed into the contract 48 months prior to the claim against the contract owner are not included (i.e. not protected).