Florida is one of the most protective states for life insurance. Florida Statute 222.14 exempts the cash surrender value of life insurance (and annuity proceeds) from garnishment or attachment by creditors of the insured, with no dollar cap, unless the policy was bought for the benefit of that creditor. Florida Statute 222.13 protects death proceeds paid to a named beneficiary from the insured's creditors. The fine print: proceeds payable to the estate lose protection, the beneficiary's own creditors may reach proceeds once paid, and fraudulent transfer law still applies.
We are licensed insurance brokers, not CPAs or attorneys. Treat the tax and legal points on this page as general education, and confirm them with your own CPA or attorney before acting.
On this page
Two statutes, two protections
| Florida Statute 222.14 | Florida Statute 222.13 | |
|---|---|---|
| Protects | Cash surrender value of life policies, and annuity proceeds | Death proceeds |
| From whom | Creditors of the insured (courts have also looked at whether the insured owns the policy) | Creditors of the insured |
| Exception | Policies effected for the benefit of the creditor | Proceeds payable to the insured, the insured's estate or personal representative |
| Dollar limit | None in the statute | None in the statute |
Why it matters for business owners and professionals
Doctors, dentists, contractors, real estate investors and business owners who sign personal guarantees face lawsuit and debt risk that can outrun their liability coverage. Money held as cash value in a permanent life policy owned by the Florida resident insured is generally beyond the reach of that person's judgment creditors under 222.14. Combined with Florida's homestead protection and protections for retirement accounts and annuities, life insurance is one of the main asset protection tools Florida residents use. See life insurance for Florida practice owners.
The fine print
- Payable to the estate: proceeds payable to the insured's estate are not protected by 222.13 and are available to the estate's creditors. Always name individuals or a trust as beneficiary.
- The beneficiary's creditors: 222.13 protects proceeds from the insured's creditors, not the beneficiary's. Once paid, proceeds can be reached by a beneficiary's own creditors. A trust that holds proceeds for the beneficiary can add protection.
- Ownership: some courts have tied 222.14 protection to the insured also being the owner. A policy owned by someone else on your life may be analyzed differently.
- Fraudulent transfers: moving assets into a policy to hinder, delay or defraud a known creditor can be undone under Florida's fraudulent transfer law. Plan before trouble, not after.
- Federal claims: federal tax liens and certain federal claims are not limited by state exemptions.
- Bankruptcy: Florida has opted out of the federal exemptions, so these state exemptions generally apply in bankruptcy for Florida residents who meet the residency requirements.
Planning tips
- Own cash value policies personally (as the insured) if protection of cash value is the goal, and confirm with your attorney.
- Name beneficiaries, never "my estate."
- Consider a trust as beneficiary for heirs with creditor or divorce risk.
- Fund policies from current income in the ordinary course, well before any claim exists.
- Review protection when you move; other states protect far less. See moving to Florida or Tennessee.
Frequently asked questions
Is life insurance cash value protected from creditors in Florida?
Generally yes. Florida Statute 222.14 exempts the cash surrender value of life insurance from attachment or garnishment by the insured's creditors, unless the policy was bought for the benefit of that creditor. Fraudulent transfer rules still apply.
Are life insurance death benefits protected from creditors in Florida?
Florida Statute 222.13 protects proceeds payable to a named beneficiary from the insured's creditors. Proceeds payable to the insured's estate are not protected, and the beneficiary's own creditors may reach the proceeds after payment.
Is there a limit on Florida's life insurance exemption?
The statutes do not set a dollar limit. Courts can still reverse transfers made to defraud creditors, and federal claims like tax liens are treated differently.
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Written by Erik Moran
Erik co-owns Moran Insurance Group with Amanda Moran and handles the agency's life insurance cases, from key person and buy-sell coverage to trust-owned policies. He works alongside clients' CPAs and attorneys, who make the tax and legal calls. More about Erik.
Sources
Moran Insurance Group is a licensed insurance agency. Our brokers are not CPAs, attorneys or tax advisors, and nothing on this page is tax, legal or investment advice. Tax figures and rules reflect our understanding as of October 2026 and can change. Coverage is subject to carrier underwriting and state availability. Confirm anything tax or legal with a licensed CPA or attorney before you act on it.