Michigan Insurance Exemptions - Life, Disability, Survivors Benefits

 

Most states have exemptions for life insurance but it's important to figure out what part of the insurance is exempt. Also disability and survivors benefits are often exempt

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Insurance Exemptions — State System

Michigan State Law Insurance Exemptions

Federal Non-Bankruptcy Insurance Exemptions
(available if using State System of exemptions)

Federal System § 522(d) — Insurance Exemptions 

Can Michigan debtors use the Federal Bankruptcy exemptions instead of Michigan exemptions?

Yes. Michigan residents can use the Federal or State exemption systems.

Michigan has passed a special set of exemptions designed only to be used in bankruptcy cases (found in Section 600.5451). Although debtors can use the the exemptions in Michigan's "bankruptcy only" exemption statute, as well as ANY OTHER exemptions found in other Michigan statutes, such as exemptions for life insurance. (See In re Sasasak, 426 B.R. 680.)

The Federal Bankruptcy Exemptions under 11 U.S.C. § 522(d) are available to you if

  • you haven't lived in any state longer than 180 days for a while,
  • or
  • if your state allows the Federal exemptions as a choice.


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Jurisdictional relevance: ST

There are versions of this article for each State.