Exempt Life Insurance?

[qwerty64]

Anyone know if you can or should try to exempt a term life insurance policy in a Chapter 7 filing (Schedule C)?

On the one hand, it is a term policy so there is no cash value. With no cash or surrender value it would seem pointless to claim an exemption. However, I certainly wouldn't want a creditor to claim part of the death benefit if I should die.

I would want the full policy to go to my son to pay his student loans.

[BKParalegal]

Absolutely exempt the life insurance, if you or spouse die during bankruptcy or even within 180 days of discharge then the proceeds would be non-exempt and become an asset of the estate.

Good luck and don't die

[tobee43]

Absolutely exempt the life insurance, if you or spouse die during bankruptcy or even within 180 days of discharge then the proceeds would be non-exempt and become an asset of the estate.

Good luck and don't die

ROFL!!!!!!! now...that's what i call having a way with words....

but the OP...indeed...exempt the life insurance.

[AngelinaCatHub]

522(d)(7) - Unmatured life insurance policy except credit insurance.

522(d)(8) - Life insurance policy with loan value up to $10,775.

522(d)(10)( C ) - Disability, unemployment or illness benefits

522(d)(11)( C ) - Life insurance payments for a person you depended on, which you need for support

http://www.thebankruptcysite.org/exemptions/federal.html

EDIT: (C) a payment under a life insurance contract that insured the life of an individual of whom the debtor was a dependent on the date of such individual's death, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;

[DesdemonaB]

My UST asked about the term policies for my two girls 10K per child - asked if they were term or whole life - I replied they were term policies from my employer. She said ok - moved on to her next question. My guess is her way of trying to turn a no asset case into an asset case.