Legal Question in Bankruptcy in California

You should talk to your chapter 13 attorney as there are some very complex variables. However you might be able to use the life insurance proceeds to pay off your plan without increasing the percentage, and you may be able to keep it all on the side for yourself as exempt property, http://www,abc27talkback.com

You are presently in a Chapter 13 case. So, are you represented by an attorney?

Life insurance proceeds may be regarded as an 'asset' that you may have to hand over to the Chapter 13 Trustee if you can't claim the life insurance proceeds as 'exempt' from the bankruptcy estate.

I keep writing "may" since I obviously don't know the details of your case [example: what exemptions are you using?], which is why you ultimately have to speak to your attorney about all this.