ILCS » Chapter 215 · Act 5
Illinois Compiled Statutes

215 ILCS 5/238 (2026)

Exemption

✓ current as of May 2026
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(215 ILCS 5/238) (from Ch. 73, par. 850)
    Sec. 238. Exemption.
    (a) All proceeds payable because of the death of the insured and the aggregate net cash value of any or all life and endowment policies and annuity contracts payable to a wife or husband of the insured, or to a child, parent or other person dependent upon the insured, whether the power to change the beneficiary is reserved to the insured or not, and whether the insured or his estate is a contingent beneficiary or not, shall be exempt from execution, attachment, garnishment or other process, for the debts or liabilities of the insured incurred subsequent to the effective date of this Code, except as to premiums paid in fraud of creditors within the period limited by law for the recovery thereof.
    (b) Any insurance company doing business in this State and governed by this Code shall encumber or surrender accounts as defined in Section 10-24 of the Illinois Public Aid Code held by the insurance company owned by any responsible relative who is subject to a child support lien, upon notice of the lien or levy by the Department of Healthcare and Family Services (formerly Illinois Department of Public Aid) or its successor agency pursuant to Section 10-25.5 of the Illinois Public Aid Code, or upon notice of interstate lien from any other state's agency responsible for implementing the child support enforcement program set forth in Title IV, Part D of the Social Security Act.
    This Section does not prohibit the furnishing of information in accordance with the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Any insurance company governed by this Code shall enter into an agreement for data exchanges with the Department of Healthcare and Family Services provided the Department of Healthcare and Family Services pays to the insurance company a reasonable fee not to exceed its actual cost incurred. An insurance company providing information in accordance with this item shall not be liable to any owner of an account as defined in Section 10-24 of the Illinois Public Aid Code or other person for any disclosure of information to the Department of Healthcare and Family Services (formerly Department of Public Aid), for encumbering or surrendering any accounts as defined in Section 10-24 of the Illinois Public Aid Code held by the insurance company in response to a lien or order to withhold and deliver issued by a State agency, or for any other action taken pursuant to this item, including individual or mechanical errors, provided the action does not constitute gross negligence or willful misconduct. An insurance company shall have no obligation to hold, encumber, or surrender any accounts as defined in Section 10-24 of the Illinois Public Aid Code until it has been served with a subpoena, summons, warrant, court or administrative order, lien, or levy requiring that action.
(Source: P.A. 95-331, eff. 8-21-07.)

    
Notes of Decisions
Cited in 12 cases, 2003–2017 · leading case: In Re Shethi, 389 B.R. 588 (Bankr. N.D. Ill. 2008).
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In Re Shethi, 389 B.R. 588 (Bankr. N.D. Ill. 2008). · cites it 6× “” In Schedule C, Debtors claimed the foregoing “Interests in Insurance Policies” as exempt under 215 ILCS 5/238, listing each one with the same values listed above in both the column labeled “Value of Claimed Exemption” and the column labeled “Current Value of Property Without…”
People Ex Rel. White v. Travnick, 806 N.E.2d 270 (Ill. App. Ct. 2004). · cites it 2× “To support this claim, Janice cited section 238(a) of the Illinois Insurance Code (Insurance Code) (215 ILCS 5/238(a) (West 2002)), which exempts the proceeds of life insurance from process for the liabilities of the insured except in an amount equal to premiums that the insured…”
In Re Thum, 329 B.R. 848 (Bankr. C.D. Ill. 2005). “” 215 ILCS 5/238(a). As well, the Illinois Homestead Exemption law makes a person’s right in and title to a homestead “exempt from attachment, judgment, levy, or judgment sale for the payment of his or her debts or other purposes.”
In Re Ashley, 317 B.R. 352 (Bankr. C.D. Ill. 2004). “o a wife or husband of the insured, or to a child, parent or other person dependent upon the insured, whether the power to change the beneficiary is reserved to the insured or not, and whether the insured or his estate is a contingent beneficiary or not, shall be exempt from…”
Richardson v. Koeneman, 410 B.R. 820 (C.D. Ill. 2009). “’ 215 ILCS 5/238(a). As well, the Illinois Homestead Exemption law makes a person’s right in and title to a homestead ‘exempt from attachment, judgment, levy, or judgment sale for the payment of his or her debts or other purposes.”
In Re Bunting, 322 B.R. 852 (Bankr. C.D. Ill. 2005). “There, the court resolved the same issue as to the construction of a similar exemption provision of the Illinois Insurance Code, 215 ILCS 5/238(a). That Illinois Insurance Code provision was transplanted, in substantial part, into the Personal Property Exemption Law in 1982.”
In Re Elmes, 289 B.R. 100 (Bankr. N.D. Ill. 2003). “Because the judgment lien pursuant to the citation to discover assets attaches to all property of the debtors, and because the claimed exemption statute, 215 ILCS 5/238, includes both proceeds and cash surrender value, I will consider the lien here to have attached to all of the…”
In re Sharif, 564 B.R. 328 (Bankr. N.D. Ill. 2017). “While Sehriar interprets 215 ILCS 5/238(a), a plethora of courts have concluded that Schriar also applies to 735 ILCS 5/12-1001(f).”
In Re Radzilowsky, 448 B.R. 767 (Bankr. N.D. Ill. 2011). “The Illinois legislature could have easily exempted some portion of wages if it so desired, just as it “forever sequestered” other types of payments by prohibiting “execution, attachment, garnishment or other process” of life insurance proceeds, see 215 ILCS 5/238(a), and “lien,…”
In re Lee, 514 B.R. 578 (Bankr. C.D. Ill. 2014). · cites it 2× “The DEBTOR claimed the insurance policies as exempt under section 238(a) of the Illinois Insurance Code, 215 ILCS 5/238(a), and the Blackhawk account as exempt under section 12-1006 of the Illinois Code of Civil Procedure, 735 ILCS 5/12-1006.”
Sharifeh v. Fox (In re Sharif), 549 B.R. 485 (Bankr. N.D. Ill. 2016). “While Schriar interprets 215 ILCS 5/238(a), a plethora of courts have concluded that Schriar equally applies to 735 ILCS 5/12-1001(f).”
People ex rel. White v. Travnick (Ill. App. Ct. 2004). · cites it 2× “To support this claim, Janice cited section 238(a) of the Illinois Insurance Code (Insurance Code) (215 ILCS 5/238(a) (West 2002)), which exempts the proceeds of life insurance from process for the liabilities of the insured except in an amount equal to premiums that the insured…”
— 215 ILCS 5/238(a) — 10 cases
People Ex Rel. White v. Travnick, 806 N.E.2d 270 (Ill. App. Ct. 2004). “To support this claim, Janice cited section 238(a) of the Illinois Insurance Code (Insurance Code) (215 ILCS 5/238(a) (West 2002)), which exempts the proceeds of life insurance from process for the liabilities of the insured except in an amount equal to premiums that the insured…”
In Re Thum, 329 B.R. 848 (Bankr. C.D. Ill. 2005). “” 215 ILCS 5/238(a). As well, the Illinois Homestead Exemption law makes a person’s right in and title to a homestead “exempt from attachment, judgment, levy, or judgment sale for the payment of his or her debts or other purposes.”
In Re Ashley, 317 B.R. 352 (Bankr. C.D. Ill. 2004). “o a wife or husband of the insured, or to a child, parent or other person dependent upon the insured, whether the power to change the beneficiary is reserved to the insured or not, and whether the insured or his estate is a contingent beneficiary or not, shall be exempt from…”
Richardson v. Koeneman, 410 B.R. 820 (C.D. Ill. 2009). “’ 215 ILCS 5/238(a). As well, the Illinois Homestead Exemption law makes a person’s right in and title to a homestead ‘exempt from attachment, judgment, levy, or judgment sale for the payment of his or her debts or other purposes.”
In Re Bunting, 322 B.R. 852 (Bankr. C.D. Ill. 2005). “There, the court resolved the same issue as to the construction of a similar exemption provision of the Illinois Insurance Code, 215 ILCS 5/238(a). That Illinois Insurance Code provision was transplanted, in substantial part, into the Personal Property Exemption Law in 1982.”
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