If your life insurance proceeds are payable to your estate then those funds are expected to be used to pay your bills. Unpaid bills you incurred during your lifetime that are still due at your death will be paid by the executor of your estate. If you do not have enough cash assets to pay your bills the court may direct the executor to sell off assets to pay your bills.
If the debts belong to the person who passed away, and if the beneficiary on his/her policy is the estate, then the debt collectors will go after the life insurance proceeds to pay off the deceased person's outstanding debts.
If the beneficiary of the deceased person's policy is a person, debt collectors cannot go after the insurance proceeds unless the beneficiary was a co-signer of the debt along with the deceased person.
If it is the beneficiary who has the debts, then the life insurance proceeds received will be fair game for debt collectors.
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If the beneficiary of the deceased person's policy is a person, debt collectors cannot go after the insurance proceeds unless the beneficiary was a co-signer of the debt along with the deceased person.
If it is the beneficiary who has the debts, then the life insurance proceeds received will be fair game for debt collectors.