Question
What is the name of your state?What is the name of your state? Michigan
My sister is terminally ill without medical insurance, will her daughter (the life insurance beneficiary) be obligated to use the life insurance payout for her mother's medical debt?
Answer
What is the name of your state?What is the name of your state? Michigan
My sister is terminally ill without medical insurance, will her daughter (the life insurance beneficiary) be obligated to use the life insurance payout for her mother's medical debt?
The estate is responsible for any outstanding medical bills. Life insurance passes outside of the estate. So the conclusion would be no.
Answer
I agree with Ohiogal. The life ins. proceeds go to the beneficiary (her daughter) & the proceeds of a life ins. pol. do not have to be used to pay the deceased's debts.