HomeFiling for bankruptcy is usually person’s worst nightmare, but when it comes to protecting your assets (including the value of your life insurance policy), information is key. A life insurance policy is considered valuable property, which means creditors may attempt to “acquire an interest in the policy’s values,” but all states and the federal government have “enacted legislation providing protections for life insurance against the claims of creditors,” says Glenn E. Stevick, Jr., a professor with The American College.
Source: Home Insurance