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orangecat_gw

Must life insurance be used to pay deceased's bills?

orangecat
17 years ago

When a person dies with no assets (no house, no savings, etc.) but with an enormous amount of medical bills, what happens to the life insurance? (Assuming the amount of life insurance is small and nowhere near enough to even make a dent in the medical bills). Are the person's children (assuming there is no surviving spouse) required to use the life insurance proceeds to pay off bills (that were in the parent's name only)? Are they in any way responsible for the debts? Or can the life insurance be used for funeral expenses?

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