Often, yes. Colorado law generally protects life insurance proceeds paid to a named beneficiary from the insured person’s creditors, and it also protects a policy’s cash surrender value up to a limit set by statute (C.R.S. 13-54-102), with exceptions for premiums paid shortly before a judgment or bankruptcy.
Proceeds paid to your estate can become reachable by creditors through probate, and once a beneficiary receives the money, their own creditors may be able to reach it. This isn’t legal advice, so consult a Colorado attorney about asset protection for your situation.
Questions about your own policy? Johnson Insurance Agency in Englewood helps families and businesses across the Denver metro area and Colorado compare coverage from multiple carriers. Call us at 303-768-8130.
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