When is the best time to cash in life insurance?

I have a small policy so my sister and nephew do not get stuck with my burial expenses. I do not want my creditors to find out about it and suck it up dry. Should the beneficiaries cash it immediately upon my death, or wait a certain amount of time for my creditors to write my debt off?

When is the best time to cash in life insurance?
to the best of my knowledge, life insurance proceeds are NOT subject to being taken for payment of debts, but it is best to check with the insurance agent and a financial specialist who can research the law in your state.
Reply:If creditors are coming after you and filing suit against you or you have filed for bankruptcy, the cash value may be fair game to creditors now...





Upon death, the death benefit would pass to your beneficiaries and not be subject to creditors.
Reply:?? Your creditors can't ACCESS the life insurance procedes, unless you make YOUR ESTATE the beneficiary. Once that life policy pays your sister, it's HER money, and SHE is NOT responsible for your debts. She can tell the creditors to go pound sand.





The beneficiaries should put in the claim immediately, so they have the money to pay for your burial expenses.
Reply:Your creditors can't touch the life insurance, as said above.





It should probably be noted that many states allow for a clause in life insurance policies that voids them in the case of suicide of the insured.
Reply:When you die!

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