Generally, yes, when the policy is payable to a spouse, children, or dependent relatives.
Tennessee law (Tenn. Code Ann. § 56-7-203) generally protects life insurance proceeds and cash surrender values payable to those family members from the insured person’s creditors. Proceeds paid to your estate instead can go through probate and become reachable by creditors.
Once your beneficiary receives the money, their own creditors may be able to reach it. This isn’t legal advice, so consult a Tennessee attorney about asset protection for your situation.
Questions about your own policy? Ace Insurance Consultants in Knoxville helps homeowners and drivers across Tennessee compare options from multiple carriers.
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