Does insurance money that has a beneficiary have to be used to pay outstanding credt card balances when you die?

The answer depends on the state of jurisdiction ... in which locale will the decedent's estate be probated? In Ohio, for example (and in most states), courts cannot require that an insurance company make a check payable to anyone but the policy's beneficiary. Since the beneficiary who is not a co-signer of the debt is not responsible for the debt, the creditor will not be able to recover money from insurance proceeds. Keep in mind, however, that any other assets owned by the decedent are available to settle the decedent's just debts, and insurance beneficiaries who also inherit other assets of any value (the gold watch, the Baseball card collection) can be forced to liquidate those assets to satisfy the decedent's estate ... and that heir might rather give up some cash received from an insurance policy so he/she can keep dear old dad's gold cuff links.