Loans coming from a life insurance policy are not debts. If you die and you didn't repay the loan, the loan amount plus interest is deducted from the face amount of the policy. If you cancel the policy or let the policy lapse while there's a loan balance, you will owe income taxes on the loan.
It depends on the beneficiary of the policy. If it say estate, yes.
No. Life insurance is paid the the beneficiary named in the policy, your creditors have no claim against the insurance proceeds EXCEPT if the proceeds are paid to your estate.
There is no requirement to 'read the will.' The claim against the life insurance policy can be made any time after the death. In many cases it will not be a part of the estate.
401 K assets are considered part of an individuals estate for Federal Estate Tax purposes. Life Insurance would also be includable in the gross estate if the decedent owned the Insurance Policy. However if a Irrevocable Life Insurance Trust (ILIT) owned the Insurance Policy it would be excludable from the decedent's estate if the policy was transferred to the Trust 3 years prior to the decedents death. If the policy had been transferred to the Trust within 3 years of the decedents death it would be includable in the decedeants gross estate due to the "3 year throwback rule." The way around the three year throwback rule is to have the (ILIT) be the applicant and owner of a new life insurance policy when the insurance policy is first set up. If that is not possible then be aware of the 3 year throwback rule and hold your breath.
only if there is no beneficiary named on the policy, or if the beneficiary(ies) deceased before the insured.
You have to file a creditor's claim against the estate of the father.
Retirement Benefits after Death?NO. Retirement benefits cease once a person dies and therefore would not be part of an estate. When a person Dies, they are no longer considered "Retired", They are after death considered "Expired".Life insurance also is not part of an estate unless there is no named beneficiary. The proceeds of a life insurance policy belong to the beneficiary named on the policy, Not to the deceased nor to the deceased estate.
The will has no relationship to the insurance policy. The Policy is a contract between the insurance company and the insured and does not become a part of the estate.
if the owner of a life insurance policy dies and the policy is on her son. What happens to the ppolicy and is it part of the estate.
The benefits from a life insurance policy are treated as part of the estate and subject to the estate tax. They are not subject to income tax.
If the insurance policy owner did not specify a beneficiary or the beneficiary is deceased, then the life insurance proceeds go to the insured's estate.
Life insurance is not considered part of an estate and is not available to pay the decedent's bills and debts. Even if there is no money whatsoever to pay bills, the insurance is not part of the estate. The only exception would be if there were no existing named beneficiaries or if the policy is payable to the estate. But even there, keep in mind that it isn't the "insurance" money that is now available to pay the debts. It is "estate" money, because the proceeds were payable to the estate. The Federal government will include life insurance proceeds as part of the gross estate for federal estate tax purposes, but that does not mean they are actually part of the estate.