A beneficiary receives the proceeds from a life insurance policy in a lump-sum payment. Which of the following statements best explains how the proceeds will be treated in relation to the debts of the beneficiary?

A) It is protected from the beneficiary's creditors once it is paid to a beneficiary.
B) It can be subject to the beneficiary's debts and creditors.
C) It is protected from the beneficiary's creditors as long as it is paid in a lump sum.
D) It is not subject to the beneficiary's debts and creditors."

Ans: B) It can be subject to the beneficiary's debts and creditors.