What are contested benefits?
Life insurance companies keep careful records of who has been designated to be the beneficiary by the policy owner. So in most cases, there is no doubt about who is entitled to the proceeds. If a creditor tries to contest the payment of the life insurance proceeds to the person who is named as beneficiary, he will likely fail, because life insurance proceeds to a beneficiary cannot usually be attached for payment of debts. If the beneficiary is the estate of the insured, the Will would determine who gets the money through normal probate procedures.
