answered on 28/08/2014
On the assumption that the insurance policy names a beneficiary, then the proceeds will belong to the beneficiary, and it will be protected from the insured's creditors. In your query, the bankrupt will have possession of the half. The OA will decide how to deal with the 50% share and it may not compel the bankrupt to sell the 50% share. Further, it is difficult, if not impossible, to sell a 50% share in any property as a matter of practical enforcement.