Life insurance or annuity for or assigned to spouse or children or dependent relatives exempt from claims of creditors

The net amount payable under any policy of life insurance or under any annuity contract upon the life of any person made for the benefit of, or assigned to, the spouse or children, or dependent relatives of the persons, is exempt from all claims of the creditors, including execution, attachment, seizure, and garnishment, of the person arising out of or based upon any obligation created after January 1, 1932, whether or not the right to change the named beneficiary is reserved by or permitted to that person. Use of exempt funds does not change the classification of the funds used from exempt to nonexempt.