What is one consequence if proceeds from a life insurance policy are left with an insurer for a beneficiary?

When proceeds from a life insurance policy are left with an insurer for a beneficiary, one significant consequence is that those proceeds are generally not subject to creditor claims. This means that if the policyholder had debts at the time of their passing, creditors cannot pursue the insurance proceeds to settle those debts. This feature provides a protective measure for the beneficiary, ensuring that the funds are preserved for their intended purpose—supporting the beneficiaries financially after the policyholder’s death.

This protection is a crucial aspect of life insurance as it serves to safeguard the interests of the beneficiary, allowing them to receive the full benefit without adverse financial impacts from the decedent's obligations. Therefore, keeping the proceeds with the insurer provides both security and peace of mind for the beneficiary.