life insurance; cash value;
creditors
HB 2516 increases the cash value exemption limit for Arizona life insurance policies to $50,000.
In 1963, a cash value of up to $2,000 per dependent of a life insurance policy was exempt from claims and demands of all creditors in the case of bankruptcy or any proceedings before an Arizona court. In 1992, the cash value amount was changed from $2,000 to $25,000. Currently the law protects the insured up to $25,000 in cash values in life insurance policies. There are 41 states with unlimited creditors exemption for life insurance benefits, as of March, 2000.