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HRS §431:10-233

Group life insurance payouts are protected from creditors

Money from a group life insurance policy, whether paid to the insured person or to a beneficiary, is protected from being taken by creditors through court orders or other legal actions. If no named beneficiary is chosen, the money does not become part of the insured person's estate to pay their debts. This protection does not apply to certain policies issued under a specific law if the money is used to pay the debt the insurance was meant to cover.

beneficiariescreditorsdebtors

The statute, as written — Exemption of proceeds; group life

(a) A policy of group life insurance or the proceeds thereof payable to the individual insured or to the beneficiary thereunder, shall not be liable, either before or after payment, to be applied to any legal or equitable process to pay any liability of any person having a right under the policy. The proceeds of the policy, when not made payable to a named beneficiary or to a third person pursuant to a facility-of-payment clause, shall not constitute a part of the estate of the individual insured for the payment of the insured's debts. (b) This section shall not apply to group life insurance policies issued under section 431:10D-203 to the extent that the proceeds are applied to payment of the obligation for the purpose of which the insurance was so issued.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.