If a life insurance policy specifically names a beneficiary other than the insured's estate, what recourse may the creditors of the deceased insured take to attach the policy proceeds?

If a life insurance policy specifically names a beneficiary other than the insured's estate, what recourse may the creditors of the deceased insured take to attach the policy proceeds?


A) File a petition with the insurer showing proof of the deceased insured's outstanding debts and thus qualify for a portion of the death benefit.

B) Nothing, because life insurance proceeds are exempt from the claims of the deceased insured's creditors as long as there is a named beneficiary other than the insured's estate.

C) Seek a court injunction to delay payment of the death proceeds until the issue of who gets paid is settled in court.

D) Attach a lien against the policy that automatically diverts a portion of the death benefit to the creditor.



Answer: B) Nothing, because life insurance proceeds are exempt from the claims of the deceased insured's creditors as long as there is a named beneficiary other than the insured's estate.

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