Can Creditors Take Life Insurance Money? 
If the person who passed is the one with the debt , and if that person was the Insured person on the policy , then creditors can only take life insurance money left if the beneficiary was the Insured 's estate . If the Insured chose a person as the beneficiary , creditors can not take life insurance money from the beneficiary , unless perhaps the beneficiary was a co-signers on the insured person 's debt . 