A creditor generally can reach insurance proceeds payable under a life insurance policy if the payment of the premiums constituted a fraud on the creditor.

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If the payment of premiums on a life insurance policy was made with the intent to defraud creditors, or if such payments rendered the policyholder insolvent, creditors may have a claim against the insurance proceeds as these actions can be considered fraudulent transfers designed to protect assets from creditors.

A Creditor Generally Can Reach Insurance Proceeds Payable Under a Life