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Many people buy life insurance not only to leave something behind for their loved ones but also to help deal with any debt and final expenses. Your debts become the responsibility of your estate after you die. Your estate is everything you owned at the time of your death. The executor of your estate, the person responsible for dealing with your will and estate after your death, will use your assets to pay off your debts.
NerdWallet gives you a complete view of your money, bills, debts and spending — all in one place.
What Happens to a Credit Account When Your Spouse Dies
You have the right to tell a debt collector to stop contacting you by sending a letter. Read more from the FTC. In addition, life insurance payouts are usually not taxable.
One important note: If the life insurance beneficiaries you named are no longer living, your death benefit may go into your estate and be subject to creditors. Keep your beneficiary info updated. At NerdWallet, we strive to help you make financial decisions with confidence.
To do this, many or all of the products featured here are from our partners. Our opinions are our own. Really get to know your money NerdWallet gives you a complete view of your money, bills, debts and spending — all in one place.
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