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Can a credit card company collect debt from a life insurance policy?

Reedsville, PA |

My mother passed away and had credit card debt, she has no assets, but does have a life insurance policy. Can the credit card company collect the debt from the insurance policy?

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Attorney answers 2


Not unless the life insurance listed her "estate" or a "trust" as a beneficiary. If it had specific named beneficiaries, than no. Of course, you should see a lawyer licensed in your state who can look at the documents to confirm this. I am basing this on your limited question and on basic legal principles.


The beneficiary of the life insurance policy is entitled to receive the insurance free and clear of any debt that your mother had. However, if the life insurance policy did not name a beneficiary, or if the beneficiary is the estate of your mother, then it would be an asset of the estate and the credit card debt would have to be paid from those assets.