If I Die Before My Credit Debt is Paid Off, Can the Credit Card Company Seize Money from my Life Insurance Policy?

Share the Knowledge!

“If I die with credit card debt, can the credit card company seize my life insurance policy from my children to pay off the debt?”

[NOTE: Articles and answers on DearEsq., while written and published by lawyers, do not constitute legal advice, and no attorney-client relationship is formed by your reading of this information. You should always consult with an attorney for any legal situations.]

When your estate is settled up after your death, all of your assets, including insurance proceeds, will go to pay funeral expenses, taxes, credit cards, etc. before the rest is distributed to your beneficiaries. If you owe more than you own, unless your children were co-signors, they will not get stuck with the difference.



Share the Knowledge!
Share:

Author: House Attorney

A house attorney has answered this question.