Protection of Beneficiaries from Creditors (F.S. 222.13, .14)

At the insured's death, life proceeds are paid exclusively to the named beneficiary(ies) and are exempt from creditors' claims unless the policy provides otherwise (F.S. 222.13, 222.14). If proceeds are payable to the insured's estate, they become part of the estate for all purposes, are administered by the personal representative under probate law, and CAN be subject to creditor claims. Cash surrender values of life policies and annuity proceeds issued in Florida are not subject to attachment, garnishment, or legal process in favor of any creditor — unless the policy or contract was directed for the benefit of that creditor.

Name a beneficiary and the money flies over the creditors' heads. Let it land in your estate and it's fair game.