The Cash Surrender Value under a whole life Policy is exempt and protected even if a bankruptcy is filed.

I am planning to file my Chapter 7 bankruptcy soon. My son is the beneficiary to a whole life policy that I have got. I was wondering whether the cash value will be used up to for my debts and my son will not be entitled to the proceeds from the policy?

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The Cash Surrender Value under a whole life Policy is exempt and protected even if a bankruptcy is filed. There might be state imposed limitations regarding how long the policy has been in effect or who the designated beneficiary is. Since it’s your son, he will be entitled to the benefits.


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