Any “cash value” in life insurance needs to be protected in your bankruptcy or the court could liquidate the policy an take the value to pay to creditors. What Type Do You Have? For the most part, all policies offered through your employer are generally “term life”, which only pays if you die. Whole life or Universal Life.  These policies can accumulate a cash value.  Even is the policy is new and has no cash-value, please provide a copy showing this.