Life Policy Can They Be Used To Settle Credit Card Debt

[jmac54]

I have several life policies that I want to go to my grandchildren, can they be used to settle outstanding overdue amounts, before carrying out my wishes, I do not have any cash in my estate?

[barry1010]

Yes, your debts must be paid before bequests

[barry1010]

They will also be used to pay for your funeral unless you have already paid for it.

[Jonathan-Joe]

You may be able to give the policies to your grand children, a process called "assignment". The sum assured will then be paid directly to them and not into your estate. Ask the assurers whether this is possible.

[barry1010]

https://finance.zacks.com/can-life-insurance-proceeds-paid-beneficiary-forced-pay-deceaseds-debts-6368.html

[Hopkirk]

That link from Barry appears to be from America, as it mentions Arizona.
Perhaps someone can advise if UK law is different?

[rowanwitch]

There is the moral question too, if you are not responsible, everyone else pays in higher interest charges and penalty fees.