If I have say, 10,000.00 in legal judgments against me, and

by lamoore0888 » Sat Mar 12, 2011 07:25 pm

I have a 50,000.00 term life insurance policy. I have about 10,000.00 in judgments against me (on my credit report).

If I die will that 10,000.00 be deducted from the 50,000.00 insurance proceeds?

Total Comments: 2

Posted: Tue Mar 15, 2011 06:11 am Post Subject:

I guess your creditors won't have anything out of your life insurance proceeds if you've named a beneficiary. If you haven't assigned a beneficiary, then your proceeds go to your estate and the creditors may claim their amounts out of it.

Posted: Thu Mar 17, 2011 06:43 am Post Subject:

If you haven't assigned a beneficiary, then your proceeds go to your estate and the creditors may claim their amounts out of it.


Thereafter, the probate court will decide about the remaining amount on the basis of your will. If you don't have any will, then it will be decided on the basis of your state laws.

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